Doctrine of ultra vires introduction section 2 (20) of companies act, 2013 company means a company incorporated under companies act the company has different and distinct personality from its members. Ultra vires [latin, beyond the powers] the doctrine in the law of corporations that holds that if a corporation enters into a contract that is beyond the scope of its corporate powers, the contract is illegal. Ultra vires is a latin phrase meaning beyond the powers if an act requires legal authority and it is done with such authority, it is characterised in law as intra vires (within the powers. Entering into an ultra vires transaction and/or where a company'smain object (substratum) had failed, seek an order for the winding up ofthe company8 in addition, where a company entered into an ultra vires transaction, any. The ultra vires doctrine is a kind of insurance policy that reassures a company's shareholders and creditors that the company will not use their assets or funds for any purposes other than those that are afforded to it, and specified within the ultra vires doctrine.
The ultra vires doctrine was originally developed in the common law world but has ceased to be popular in many of these jurisdictions6 conse- quently, it is further. T here is a growing literature concerning the role of the ultra vires doctrine and its place within administrative law for some the doctrine is the central principle of administrative law, without which judicial intervention would rest on uncertain foundations. Let us discuss relevant aspects relating to doctrine of ultra vires introduction doctrine of ultra vires the doctrine of ultra vires was first explained by the house of lords in the leading case of ashbury railway carriage & iron co ltd v/s riche [(1875), l r 7 hl653. Ultra vires is a latin term meaning beyond powers the term is usually used to refer to acts taken by a corporation or officers of a corporation that are taken outside of the powers or authority granted to them by law or under the corporate charter.
The major exception to the ultra vires doctrine is the nonprofit sector a nonprofit company may still, in very specific situations, raise the ultra vires doctrine however, this is a very limited exception, and courts may still frown upon it being raised as a defense. Does the ultra vires doctrine prevent courts from replacing wednesbury review with proportionality sir philip sales has an interesting piece in the latest edition of the law quarterly review. Meaning of ultra vires according to the oxford dictionary, ultra vires means beyond one's legal power or authority in other words, if an act requires legal authority and it is done with.
The ultra vires doctrine of company law in zambia introduction this assignment examines the debate on the legal issues surrounding the abolition of the requirement to submit a memorandum of association when applying to incorporate a company under the zambian companies act 1994 cap 388 of the laws of zambia. The doctrine of ultra vires is the basic doctrine in administrative law the doctrine envisages that an authority can exercise only so much power as is conferred on it by law an action of the authority is intra vires when it falls within the limits of the power conferred on it but ultra vires if it goes outside this limit. Corporate law in corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's articles of incorporation or in a clause in its bylaws in the laws authorizing its formation, or similar founding documents. Abstract in this paper, we endeavour to discuss the intricacies involved in doctrine of ultra vires vis-à-vis company law the areas that we shall discuss are viz origin and establishment of the doctrine, whether investors and creditors are protected by this doctrine' we shall also deal with as to how this doctrine is ascertained.
'an ultra vires act is one beyond the purposes or powers of a corporation' 'this lesson provides an overview of the historical significance of the ultra vires doctrine, its subsequent decline in importance, and its modern status. Ultra vires definition, beyond the legal power or authority of a corporation, corporate officer, etc (opposed to intra vires) see more. Ultra vires (latin) refers to acting beyond one's powers ie with regard to what is provided for by law delegated statutes for example are expected to be set within the constraints of the. In the law the doctrine of ultra vires states that an action is null and void if it is beyond the powers of an entity for example, if congress decided to turn itself into a court and try a citizen for murder this would be beyond its powers in regard to popes, they have very broad powers indeed. Louisiana law review volume 9|number 4 may 1949 administrative law - ultra vires regulations robert h williams this note is brought to you for free and open access by the law reviews and journals at lsu law digital commons.
1 | p a g e journal on contemporary issues of law (jcil) vol 2 issue 7 critical analysis of the doctrine of ultra vires 1 simran chandok introduction in today's day and age, practically every human act needs to be censured. Doctrine of ultra vires has been developed to protect the investors and creditors of the company this doctrine prevents a company to employ the money of the investors for a purpose other than those stated in the objects clause of its memorandum. By doctrine of ultra vires a contract made by a corporation beyond the scope of its corporate powers is unlawful ( community fed s&l vs fields, 128 f 2nd 705 ) a holder who does not give value cannot qualify as a holder in due course. Ultra vires related content beyond the powers this term relates generally to the excess of legal powers or authority end of document also found in.
4 summary doctrine of ultra vires under companies act 1956 the doctrine of ultra vires is a latin term which means beyond powersthis term is usually used to mean and refer to the acts of the corporations or the companies. The doctrine of ultra vires assumed a vital part in the improvement of corporate development despite the fact that to a great extent it is now obsolete in present day private company law, the precept stays in full drive for government companies. Ultra vires activities activities in which a publicly-traded company engages that are outside the powers delegated to it in its charter and/or bylaws every publicly-traded.