Question

    In whose favour is the Doctrine of Indoor Management?

    A Directors Correct Answer Incorrect Answer
    B Employees Correct Answer Incorrect Answer
    C External Stakeholders Correct Answer Incorrect Answer
    D Internal Control System Correct Answer Incorrect Answer

    Solution

    Outsiders dealing with the company are not required to enquire into the internal management of the company. They are entitled to assume that as far as internal proceedings of the company are concerned, everything has been done regularly. Also known as Turquand rule

    Practice Next