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The doctrine of indoor management is an important principle of Company Law that protects persons dealing with a company in good faith. It is also known as the “Turquand Rule”, after the leading English case Royal British Bank v. Turquand (1856). The doctrine is based on the principle that an outsider dealing with a company is entitled to assume that all internal procedures and formalities required by the company’s Articles of Association have been properly complied with. An outsider is not expected to investigate the internal management of the company before entering into a transaction. The doctrine operates as an exception to the doctrine of constructive notice. Under constructive notice, every _______ ________ ___ ____ ____ _________.
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