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36039 Dhillon v. Jaffer  (Law of professions – Barristers and solicitors – Breach of fiduciary duty – Damages)

The “Indoor Management Rule” is well established in Canadian law. This common law rule holds that parties dealing with a corporation, acting in good faith and without knowledge of any irregularity, are entitled to assume that a corporation’s internal policies and proceedings have been followed and complied with. Some elements of the rule are codified in the various provincial business corporations statutes.