Advertisements
Advertisements
प्रश्न
Study the following case/situation and express your opinion:
The Articles of a company stated that while borrowing any money from outsiders. The document must have the signatures of the Managing Director (MD) and any one of the directors. The Articles of Association clearly stated the procedure to be followed while borrowing money. The Managing Director did not follow all the procedures but still borrowed money from Mr. X. Mr. X assumed that the MD has followed the required procedures:
(a) Can the MD be held punishable for his act?
(b) Under which Doctrine can Mr. X take action against the company?
(c) Explain the Doctrine.
Advertisements
उत्तर
(a) The Managing Director (MD) can be held punishable for this act.
(b) Under the doctrine of indoor management, Mr. X can take action against the company.
(c) The doctrine of indoor management specifies that persons (third parties) entering into a contract with the company are not found to inquire or know whether the company or it's MD or officers have properly followed the internal proceedings as stated in the Articles or not. As per the doctrine of indoor management, it is assumed that the company or it's MD or Officer acts as per Memorandum and Articles of Association. This doctrine protects the interest of the outsiders when they are unaware of the correctness of the internal proceedings of the company.
APPEARS IN
संबंधित प्रश्न
Select the correct answer from the option given below and rewrite the sentence.
_______is a primary document of the company which contains the aims and objectives of the company.
______ describes the relationship between company and outsiders.
Select the correct answer from the option given below and rewrite the sentence.
Any act done by the company beyond the powers of Memorandum is called as _______.
Select the correct answer from the option given below and rewrite the sentence.
Articles establishes relationship between company and ________.
Select the correct answer from the option given below and rewrite the sentence.
_______ is an invitation to the public to subscribe for the shares of the Company.
Write a word or a term or a phrase which can substitute the following statement:
Primary document of a company which states aims and objectives of a company.
Write a word or a term or a phrase which can substitute the following statement:
Document which contains, Name Clause, Registered Office Clause, Capital Clause, etc.
Write a word or a term or a phrase which can substitute the following statement:
Document which states the limits within which a company has to operate.
Write a word or a term or a phrase which can substitute the following statement:
Document which contains rules and regulations for internal management.
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes relationship between a company and its members.
State whether the following statement is True or False:
Memorandum of Association and Articles of Association is prepared at the time of incorporation of a company.
State whether the following statement is True or False:
Any act done by the company beyond the powers of Memorandum is Ultra Vires.
State whether the following statement is True or False:
Every subscriber who signs the Memorandum must also sign the Articles.
State whether the following statement is True or False:
Entrenched Articles cannot be easily altered.
Find the odd one.
Complete the sentence.
The document issued by a company to invite investors to buy its securities is called as _________
Select the correct option from the given options:
| Group A | Group B |
| Incomplete prospectus | ___________ |
Explain the following term/concept.
Name clause
Explain the following term/concept.
Capital clauses
