The doctrine of indoor management is an exception to rules of constructive notice. As per the doctrine of indoor management, the person dealing with the company have right to assume that as far as the internal proceeding of the company are concerned everything has been done properly. It is necessary to read the registered documents and to see that the proposed dealing in not inconsistent therewith. They are not required to do anything more as per the regularity of the internal proceeding. This disadvantage of doctrine of constructive notice is called the doctrine of indoor management.
The doctrine of indoor management is based on the maxim omnia praesumuntur rit esse acts (all the things are presumed to have been done rightly). The doctrine seeks to protect outsiders against the company.
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