Law · Company Law
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: The Doctrine of Indoor Management, also known as Turquand's Rule, serves as an exception to the Doctrine of Constructive Notice by protecting bona fide third parties dealing with the company in good faith. Reason R: Under the legal remedies for ultra vires acts, directors who engage in such activities are legally shielded and cannot be required to compensate the company for any resulting losses. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are correct and R is the correct explanation of A
- 2Both A and R are correct but R is NOT the correct explanation of A
- 3A is correct but R is not correct✓
- 4A is not correct but R is correct
Correct answer
A is correct but R is not correct
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