“Memorandum and articles of company are public documents. Explain this statement and explain the principle of internal management. [“Memorandum and articles of a company are public documents.” Discuss this statement and discuss the doctrine of indoor managements.]
Discuss the principle of internal management and mention its exceptions. [Discuss the doctrine of ‘Indoor Management and state its exceptions.]
After the registration of the memorandum and articles of association of the company, these documents become public documents. Any person who deals with the company is expected to have knowledge of the council’s memorandum and articles of the company and that he has entered into an agreement with the company only after having read, heard and understood these documents, even if he has ever seen, read these documents. Or don’t even understand. If any person, after dealing with the company, suffers loss due to ignorance of the rules given in the council’s semenion, then he will have to bear it himself. This councilor is not exempt from liability for such loss on the ground of lack of knowledge of the memorandum. can.
It is clear from the above discussion that every person must study the memorandum and articles of the company before dealing with the company. By doing this he will have knowledge of the rights of the operators. Judge Palmer also wrote that “Memorandum and Articles of Association of the Company are public documents. Therefore it is a well-recognized fact that the shareholders and other persons dealing with an amalgamating company shall have access to these documents.