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Commerce · Q466

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 466

Q466

The doctrine of internal management states that

A.
The directors of the company should perform the business of the company with the permission of the shareholders
B.
The director is free to do internal administration of the company as per his choice
C.
External persons should not interfere in the internal affairs of the company
D.
Outsiders dealing with the company have the right to assume that the company has fully complied with the provision of article of association
Answer

Answer: Option D

Solution

Answer: Option D
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