The correct answer is: C. External persons should not interfere in the internal affairs of the company.
The doctrine of internal management is a legal principle that states that the management of a company is the responsibility of the directors, and that outsiders should
not interfere in their decisions. This doctrine is based on the idea that the directors are in the best position to make decisions for the company, and that outsiders do not have the same level of knowledge or expertise.The doctrine of internal management is important because it protects the autonomy of companies. It allows companies to make their own decisions without interference from the government or other organizations. This is important for businesses, as it allows them to be more flexible and responsive to market conditions.
The doctrine of internal management is not absolute, however. There are some situations in which outsiders can interfere in the internal affairs of a company. For example, if the directors are acting illegally or in a way that is harmful to the company, then outsiders may be able to take legal action.
Overall, the doctrine of internal management is an important legal principle that protects the autonomy of companies. It allows companies to make their own decisions without interference from the government or other organizations. This is important for businesses, as it allows them to be more flexible and responsive to market conditions.
Here is a brief explanation of each option:
A. The
directors of the company should perform the business of the company with the permission of the shareholders. This is not correct, as the directors are responsible for the day-to-day management of the company, and they do not need the permission of the shareholders to do so.B. The director is free to do internal administration of the company as per his choice. This is also not correct, as the directors are subject to the law and to the articles of association of the company. They cannot do whatever they want, and they must act in the best interests of the company.
C. External persons should not interfere in the internal affairs of the company. This is the correct answer, as the doctrine of internal management states that the management of a company is the responsibility of the directors, and that outsiders should not interfere in their decisions.
D. Outsiders dealing with the company have the right to assume that the company has fully complied with the provision of article of association. This is not correct, as outsiders cannot assume that a company has complied with the law or with its articles of association. They must check for themselves to make sure that the company is complying with its obligations.