5/11/2011 Scope of indoor management rule Examples where rule can be applied:procedural irregularities. Can this rule apply to substantive defects in authority? Eg can this rule apply where no attempt has been made to confer authority on person? Where transaction does not involve use of seal:see Houghton Co v Nothard,Lowe and Wills Ltd [1927]1 KB 246(Eng CA);Kreditbank Cassel GmbH v Schenkers Ltd [1927]All ER Rep 421 (Eng CA);Northside Developments v RegistrarGeneral per Dawson J and Toohey J (HCA);National Commercial Bank Ltd v Albert Hwang [2002]2 HKLRD 408(CFI) 19 Scope of indoor management rule Where common seal used and persons signed in accordance with articles:two opposing views. .(1)Turquand not applicable if there is neither actual nor apparent authority:Northside Developments v Registrar-General per Dawson J and Toohey J(HCA);cf Hua Rong Finance v Mega Capital. Wide sense of "forgery". 105/11/2011 10 19 Scope of indoor management rule • Examples where rule can be applied: procedural irregularities. • Can this rule apply to substantive defects in authority? • Eg can this rule apply where no attempt has been made to confer authority on person? • Where transaction does not involve use of seal: see Houghton & Co v Nothard, Lowe and Wills Ltd [1927] 1 KB 246 (Eng CA); Kreditbank Cassel GmbH v Schenkers Ltd [1927] All ER Rep 421 (Eng CA); Northside Developments v RegistrarGeneral per Dawson J and Toohey J (HCA); National Commercial Bank Ltd v Albert Hwang [2002] 2 HKLRD 408 (CFI) 20 Scope of indoor management rule • Where common seal used and persons signed in accordance with articles: two opposing views. • (1) Turquand not applicable if there is neither actual nor apparent authority: Northside Developments v Registrar-General per Dawson J and Toohey J (HCA); cf Hua Rong Finance v Mega Capital. • Wide sense of “forgery