Business Laws
The Companies Act, 2013
8% weightage

Doctrine of Indoor Management

Complete study guide with 5 practice questions, detailed explanations, and expert solutions for Doctrine of Indoor Management in CA Foundation Business Laws.

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Study Notes: Doctrine of Indoor Management

Free study material for CA Foundation Business LawsThe Companies Act, 2013

Doctrine of Indoor Management (Section 40): Directors' actions within authority scope bind company; members cannot challenge when third parties involved. Rule: Member cannot claim ignorance of directors' authority; outsiders presumed to rely on proper authority. Exceptions: Acts outside corporate powers, acts prohibited by law, acts conflicting with public documents. Limitation: Doctrine protects third parties, not members. For accountants, doctrine affects transaction validity assessment and audit procedures.

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