Any activity or business the company carries out, or intends to do so, should fall under the ambit of this object clause.
No act of a corporation and no conveyance or transfer of real or personal property to or by a corporation shall be invalid by reason of the fact that the corporation was without capacity or power to do such act or to make or receive such conveyance or transfer, but such lack of capacity or power may be asserted: If the unauthorized acts or transfer sought to be enjoined are being, or are to be, performed pursuant to any contract to which the corporation is a party, the court may, if all of the parties to the contract are parties to the proceeding and if it deems the same to be equitable, set aside and enjoin the performance of such contract, and in so doing may allow to the corporation or the other parties to the contract, as the case may be, compensation for the loss or damage sustained by either of them which may result from the action of the court in setting aside and enjoining the performance of such contract, but anticipated profits to be derived from the performance of the contract shall not be awarded by the court as a loss or damage sustained.In administrative law, the doctrine of ultra vires governs all delegated legislation.
Where an act is found to be ultra vires, it will have no legal effect.” (1) Ultra Vires.
Embracing mainstream international law, this section on ultra vires explores the context, history and effect of the area of the law covered here.
Modified Ultra Vires Doctrine Supporters of the ultra vires doctrine, notably, Christopher Forsyth41 and Mark Elliot42 in their responses to the arguments levelled against the doctrine, have conceded that the legislature will rarely have any specific intent as to the content of the rules, which make up judicial review.
Ultra vires doctrine has shown the tendency of decline in the course of legislation and judicial practice. 5. From the spectrum of corporation law, Ultra vires has been proved to be powerless in protecting the interests of shareholders and creditors. 99 99 Stimulating a Critique on Ultra Vires Doctrine in Nigeria By Dr.
Aniedi J. Ikpang 1. Introduction Ultra vires is a Latin expression which lawyers and civil servants use to describe acts undertaken beyond (ultra) the legal powers (vires) of those who have purported to undertake them.1 thNevertheless, in the 19 century, the ultra vires doctrine was applied.
Claims Under the Ultra Vires Doctrine Prohibited Corporate Actions Under the Ultra Vires Doctrine. Under Texas law ultra vires acts are “acts beyond the scope of the powers of a corporation as defined by its charter or the laws of the state of incorporation.”. 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 . The doctrine of ultra vires applies to the memorandum of a company. The memorandum of association contains the permitted range of activities in its objects clause and a company cannot practice any other activity which is not defined under the scope of objectives mentioned in the memorandum.
But the whole doctrine of ultra vires has enjoyed little favor in recent legal opinion. The limited capacity theory is denounced as unsound, the corporation portrayed as a real thing, not merely a creature of the law which created it.
Ultra Vires in England • In England the doctrine of ultra vires has been restricted by the European Communities Act, • Any transaction decided by its directors shall be deemed to be within the capacity of the company • Ultra vires has only been modified, not abolished.