The 'doctrine of constructive notice' provides that:
Answer & Solution
Correct answer: B.
1. The doctrine of CONSTRUCTIVE NOTICE: every person dealing with a company is deemed to have notice of the contents of the company's MoA and AoA (registered public documents), and is bound by them.
2. The doctrine protects the COMPANY from outsiders pleading ignorance.
3. The doctrine of INDOOR MANAGEMENT (Royal British Bank v. Turquand) is the corresponding outsider-protection: third parties dealing with the company need not enquire into internal procedural compliance.
4. The two doctrines together balance protection of the company and protection of bona fide outsiders.
5. Hence option A is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013; Royal British Bank v. Turquand, (1856) 6 E&B 327_
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