How is Doctrine of ultra virus used?
The Doctrine of Ultra Vires is a fundamental rule of Company Law. Hence, if the company does an act, or enters into a contract beyond the powers of the directors and/or the company itself, then the said act/contract is void and not legally binding on the company. The term Ultra Vires means ‘Beyond Powers’.
What are the effects of Doctrine of ultra vires?
Effects of an Ultra Vires Act An ultra vires act will be wholly void and it will not bind the company; neither the company nor the outsider can enforce the contract. 2. Any member of the company can bring injunction against the company to prevent it from doing any ultra vires act. 3.
What are the grounds of 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 law or the rules to follow on ultra vires acts?
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. The doctrine of ultra vires played an important role in the development of corporate powers. The earliest legal view was that such acts were void.
What are ultra vires in law?
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.
Which of the following case is about doctrine of ultra vires?
The Doctrine of Ultra Vires has its genesis in the case of Ashbury Railway Carriage and Iron Co. Ltd. vs Riche wherein the directors of the company entered into a contract with Riche to provide finance to the company for the construction of a railway line.
What does ultra vires doctrine mean?
Ultra vires acts are any acts that lie beyond the authority of a corporation to perform. This can also refer to any action that is specifically prohibited by the corporate charter. The roots of the term are from a Latin phrase that means beyond the power. It is the opposite of under proper authority—intra vires.
What is doctrine of ultra vires in administrative law?
The doctrine of ultra vires is the basic doctrine in the area of administrative law. Ultra vires is a Latin phrase meaning “beyond the powers”[1]. An act which requires legal authority but is done without it is characterized in law as ultra vires. Its opposite, an act done under proper authority, is intra vires.
What is ultra vires law?
What is the doctrine of ultra vires in company law?
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.