Is a third party dealing with a corporation not required to ensure that all internal regulations have been complied with where a document is regular on its face?
Alberta, Canada
The following excerpt is from Toronto Dominion Bank v. Coopers & Lybrand Limited, 1982 CanLII 1125 (AB QB):
Royal Br. Bank v. Turquand (1856), 6 E.&B. 327, 119 E.R. 886 (Ex. Ch.), has long been quoted as authority for the proposition that a third party dealing with a corporation is not required to ensure that all the internal regulations of the company have, in fact, been complied with where a document is regular on its face.
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