What does vires mean in law?
“Within the powers”. A Latin term which relates generally to an action taken within an organisation’s or person’s scope of authority as conferred by statute.
What happens if a law is declared ultra vires?
What does Ultra vires mean? Ultra vires translates to ‘beyond the powers’. It is used to describe an act which requires legal authority or power but is then completed outside of or without the requisite authority.
What is ultra vires?
Ultra vires acts are any acts that lie beyond the authority of a corporation to perform. Ultra vires acts fall outside the powers that are specifically listed in a corporate charter or law. This can also refer to any action that is specifically prohibited by the corporate charter.
Is ultra vires illegal?
The Ultra Vires Doctrine. Ultra vires (literally “beyond the powers”) is not limited to illegal acts, although it encompasses actions barred by statute as well as by the corporate charter.
How does ultra vires work?
An exceeding of legal powers. In corporate law, ultra vires acts of directors may attract penalties contained in the Corporations Act 2001 (Cth). The principle of ultra vires is reflected in the explicit provisions relating to director’s duties within that Act.
When can the Supreme Court declare a law ultra vires?
A rule is ultra vires when it goes beyond the authority conferred on the rule making body by the relevant statute. it must also come within the scope and purview of the rule making power of the authority framing the rule. If either of these two conditions is not fulfilled; the rule would be void.
What is the principle of ultra vires?
The doctrine of ultra vires is a fundamental law of the Indian Companies Act. It lays down that if any act of the company or any contract entered into by the directors, on behalf of the company, is beyond the powers vested in the directors and company by the object clause of the MOA, it is considered null and void.