Question

Which of the following statements is incorrect? The rule in Turquand’s case:

has largely been overruled by statute.

was aimed at overcoming the doctrine of constructive notice.

has been adopted by s 129 of the Corporations Act.

does not eliminate the need for outsiders to check the registered company charges.

Answer 1

" doctrine has been adopted by the s 129 of the corporate act " this statement is incorrect

The correct statement is this:- The rule int Turquand’s Case is to the effect that an outsider dealing with that company is deemed to have constructive notice of its registered constitutional documents and not any documents that are not public. The exceptions to this rule are where the outsider knows of the irregularity in the internal management, where they do not make proper inquiries in case of suspicion and forgery of a document relied upon by the outsider.