Rule in turquands case, Business Law and Ethics

Assignment Help:

Rule in Turquands case:

This statement can be reduced to two propositions which constitute what is compositely known as "the rule in Turquand's case", namely:;

i. A person dealing with a company is bound to read the relevant restrictive provisions of the Companies Act, like the memorandum of association of the such company and the company's articles of association. Whether he doesn't do like same he will be deemed to have read them and, as a consequence, to have been aware of their provisions.

ii. In so far as the articles provide that a transaction may be effected by some internal procedure, the person dealing with the company (called "outsider") may assume that the procedure has been duly complied with.

The effect of these propositions is that the company will be bound by the transaction even if the prescribed procedure was in fact not followed or complied with. Hence an "internal procedure" for this purpose would usually be a decision of the company which is made by an ordinary resolution passed by the company in general meeting, or a resolution of the directors passed at a board meeting. Such a resolution is not registerable at the Companies Registry pursuant to s.143 or any other section of the Companies Act and the outsider who goes to the Registry would not be in a position to ascertain whether it had in fact been passed. Rather than compel him to go to the relevant office of the company to make enquiry after then the courts decided to, as it were, "give him the advantage of the doubt" through holding that the resolution will be deemed to have been passed even if it had not actually been passed.


Related Discussions:- Rule in turquands case

Bills, Bills: Further an Act of Parliament begins as a Bill that is th...

Bills: Further an Act of Parliament begins as a Bill that is the draft of law that Parliament intends to make.  In section 46(1) of the constitution states like "the legislati

Mind like inventions, Intellectual property refers to creations of the mind...

Intellectual property refers to creations of the mind like inventions, artistic and literary works, designs, and more used for profit. There are two categories of intellectual prop

What was the immunity from jurisdiction, WHAT WAS THE IMMUNITY FROM JURISD...

WHAT WAS THE IMMUNITY FROM JURISDICTION   States are recognized as having authority over people, things and events within their own territory and therefore may exercise jurisdict

Investigation of companys affairs, Investigation of Company's Membership: ...

Investigation of Company's Membership: Section (1) empowers the registrar to appoint one or   more competent inspectors to investigate and report on the membership of any comp

Dismiss a worker for misconduct, Question 1: What are the procedures t...

Question 1: What are the procedures that an employer should follow before he will dismiss a worker for misconduct? Question 2: Section 39 of the Labour Act provides fo

Explain articles of universal declaration of human rights, Explain Articles...

Explain Articles of Universal Declaration of Human Rights i. Preamble: 'Whereas recognition of the inherent dignity and of the equivalent and inalienable rights of all  membe

What is the theory of contracts, What is the Theory of Contracts The sp...

What is the Theory of Contracts The specialized relationship between principal and agent and between agents themselves in the policy process has been explained with the economi

Declaration and payment, Declaration and Payment: There is no provisio...

Declaration and Payment: There is no provision in the Act dealing with payment of dividends. It is therefore governed by the provisions of the company's articles, failing whic

What is the neighbour rule, What is the neighbour rule? Duty of care:...

What is the neighbour rule? Duty of care: There is a duty of care by anyone to other where this can be reasonably foreseen which one’s action may injure another (negligen

Suspected illegal unreported and unregulated vessels, Question: (a) Sus...

Question: (a) Suspected Illegal, Unreported & Unregulated (IUU) Vessels calling into Mauritius Port are subject to a series of investigations, prior to authorizing unloading

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd