ü Indoor Management Rule
o Common Law
§ Turquand’s Case
§ A third party is allowed to presume that all internal rules of the companies has been complied with unless the third party has knowledge of such non-compliance
o Statutory
§ S128(1) – a person dealing with a company is entitled to make certain assumptions in relation to those dealings.
§ Assumption is made by a person dealing with the company as provided under S129
§ The assumptions provided for in S129 relate to the internal procedures of the company having been complied with
§ Those are assumptions that a person dealing with the company is entitles to make
§ The limitation is s128(4) A person is not entitled to make an assumption in section 129 if at the time of the dealings they knew or suspected that the assumption was incorrect.
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