6 Most Important Differences between Doctrine of Indoor Management and Doctrine of Constructive Notice are mentioned below:
The Doctrine of Indoor Management:
1. It protects outsider against the company.
ADVERTISEMENTS:
2. It is confined to the internal position and affairs of the company.
3. The internal affairs need not be registered
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They are not open to public and third parties.
4. Third persons, who have no notice to any irregularity or want of authority, will be protected on the principle called the ‘Turquand Rule’.
ADVERTISEMENTS:
5. It mitigates the effects of the “Doctrine of Constrictive Notice”.
6. It is based on positive concept.
The Doctrine of Constructive Notice:
1. It protects the company against the outsider.
2. It is confined to the external position and affairs of the company.
ADVERTISEMENTS:
3. The memorandum and articles of association of the company are public documents. They must be registered with the Registrar of Companies. These are open to public and third parties to access.
4. Third persons, who have no notice of an irregularity or want of authority, if they try they could know about that irregularity or want of authority, will not be protected on the principle of ‘constructive notice’
5. It operates as an estoppel against the outsider.
6. It is based on negative concept.