Question:
"Every person dealing with the company is presumed to have read the memorandum and articles of associations and understood them in their true perspective, irrespective of the fact whether one has actually read them or not." The underlying doctrine in this regard is known as
"Every person dealing with the company is presumed to have read the memorandum and articles of associations and understood them in their true perspective, irrespective of the fact whether one has actually read them or not." The underlying doctrine in this regard is known as
Show Hint
Constructive notice = "You are assumed to know the company's rules, whether you read them or not."
Updated On: Jan 17, 2026
- Doctrine of Indoor Management
- Doctrine of Constructive Notice
- Doctrine of Lapse
- Doctrine of Outdoor Management
Show Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Understand the concept of constructive notice.
- Doctrine of constructive notice assumes that everyone dealing with a company has knowledge of its memorandum and articles of association.
Step 2: Compare with other doctrines.
- Indoor management relates to protecting outsiders dealing with the company against irregularities (different from constructive notice).
- Lapse doctrine relates to shareholders' rights ceasing after certain events.
Step 3: Conclude.
- The statement clearly refers to the doctrine of constructive notice.
Was this answer helpful?
0
0
Top CUET PG Commerce Questions
- "Every person dealing with the company is presumed to have read the memorandum and articles of associations and understood them in their true perspective, irrespective of the fact whether one has actually read them or not." The underlying doctrine in this regard is known as
- Which of the following lays down that the affairs of the company are conducted perfectly consistent with the articles of association of the company, consequently the persons dealing with them are not to be affected by any irregularity which might have taken place in the management of the company?
- Which of the following generative AI applications is considered as the most disruptive?
Match the following committees with their mandates in List I and List II:
- Arrange the following steps involved in the book building process in the correct order:
(A) Determination of issue price, finalization of basis of allotment, issue of prospectus and allotment of shares
(B) Determination of price and asking for bids along with further revision of bids
(C) Submission of RHP and appointment of syndicate members
(D) Planning an IPO/FPO via Book Building and appointment of Lead book runners
View More Questions
Top CUET PG Company Law Questions
- "Every person dealing with the company is presumed to have read the memorandum and articles of associations and understood them in their true perspective, irrespective of the fact whether one has actually read them or not." The underlying doctrine in this regard is known as
- Which of the following lays down that the affairs of the company are conducted perfectly consistent with the articles of association of the company, consequently the persons dealing with them are not to be affected by any irregularity which might have taken place in the management of the company?
- Which of the following lays down that the affairs of the company are conducted perfectly consistent with the articles of association of the company, consequently the persons dealing with them are not to be affected by any irregularity which might have taken place in the management of the company?
Top CUET PG Questions
- Given below are two statements:
Statement I: For Plato the meaning of the word 'Justice' is basically a conception in the mind only.
Statement II: For Plato the meaning of the word 'Justice' is fixed, mind-independently
In the light of the above statements, choose the correct answer from the options given below: - What is the electron count of OS6CO182-?
- XeF4 hydrolysis gives A + B, HF, and Oxygen. Find A and B
- What is more basic in pyrol and pyridine?
- Hydrolysis of Al2C3, Be2?
View More Questions