Articles of Association — SPCC STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceSPCCArticles of Association3 Marks
Question
What is the principle of internal administration?
✓
Answer
This principle means that an outsider working with the company assumes that the internal administration of the company runs smoothly and systematically.
Individuals working with the company are assumed to be aware of the details of the application form and regulation.
Since both the application form and the regulation form are public documents as per the Companies Act, the ignorance that no one is aware of the information in these documents is not valid in terms of law.
The average person can assume that the company has done what it did in accordance with the rules set out in the articles.
The ordinary person can assume that all the work has been done to implement the work which is authorized by the application form and regulation.This rule is called the principle of internal administration.
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