What is the purpose of ultra vires doctrine?

The doctrine of ultra vires is a constituent of corporate law that governs all contracts entered into by a company. As such, any contract that is beyond the scope of the company's corporate powers is deemed illegal. Ultra vires is the opposite of intra vires (Latin for Within the powers).


What is the need or purpose of the doctrine of ultra vires?

The Ultra Vires Doctrine was intended to safeguard the company's creditors and investors. The concept of ultra vires forbids the company from using money from investors who are not listed in the memorandum's object clause.

What is doctrine of ultra vires and their consequences?

What are the Consequences of Doctrine of Ultra Vires? The Doctrine of Ultra Vires's consequence states that any act done or contract made by the company which goes beyond the powers of the directors and company is completely void and inoperative and hence not binding on the company.


Is ultra vires a cause of action?

Unlike other causes of action, the proper responsive pleading to an ultra vires suit is a plea to the jurisdiction. If the plaintiff does not prove the allegation that the action was ultra vires, then it was, by default, within the governmental entity's legal authority.

What is the meaning of word ultra vires?

: beyond the scope or in excess of legal power or authority.


What is Ultra Vires? [legal terminology explained]



What is an example of ultra vires?

An act of a corporation is ultra vires when the corporation acts beyond the scope of the powers and purposes provided to it by its statute of incorporation. Ultra vires acts performed by a corporation are void (see Communities Economic Development Fund v. Canadian Pickles Corp., 1991 CarswellMan 402 (S.C.C.)).

What are the types of ultra vires?

Types of Ultra Vires Acts
  • ultra vires the Memorandum or the company,
  • ultra vires the Articles but intra vires the company, and.
  • ultra vires the directors but intra vires the company.


How do you prove ultra vires?

To ascertain whether a particular act is ultra vires or not, the main purpose must first be ascertained, then special powers for effecting that purpose must be looked for, if the act is neither within the main purpose nor the special powers expressly given by the statute, the inquiry should be made whether the act is ...


When can a law be declared 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.

Who is liable for ultra vires?

If the borrowed funds of the company are used for any ultra-vires purpose, then directors of the company will be personally liable to make good such act. If the company acquires any property from such funds, the company will have full right to such property.

Does the ultra vires doctrine still exist?

Historically, ultra vires acts performed by a corporation were generally void or voidable. Over time, the doctrine of ultra vires as applied to corporations has become rare because of: The use of general clauses in certificates of incorporation that permit a corporation to engage in any lawful business.


Is ultra vires legally binding?

perfectly valid and binding unless the sovereign state sees fit to inter- fere. An act is said to be ultra vires when it is not within the scope of the powers of the corporation to perform it under any circumstances or for any purpose.

Why is ultra vires important to judicial review?

The theoretical basis of judicial review of administrative decisions comes from the doctrine of ultra vires. The doctrine, based on upholding the rule of law, allows the courts to examine administrative decisions to ensure that they are within the scope of the power under which they were made.

Is ultra vires voidable?

It being merely voidable, an ultra vires act can be enforced or validated if there are equitable grounds for taking such action.


What are the advantages of ultra vires?

Advantages of the Doctrine of Ultra Vires

Protection of creditors: The doctrine of ultra vires also protects the interests of creditors by ensuring that the company's capital is not spent on any project or business that is beyond the scope of the objects clause.

Can a person act ultra vires?

If the decision maker exercises his powers outside the jurisdiction conferred, in a manner which is procedurally irregular or is Wednesbury unreasonable, he is acting ultra vires his powers and therefore unlawfully.

Why did the ultra vires doctrine fail?

Based on the initial discussion of facts the author concludes that the doctrine of ultra vires no longer serves its original purpose of protecting shareholders and creditors by assuring that the company assets will only be used to achieve the purpose/s specified in the objects clause.


Where does the doctrine of ultra vires apply?

The Doctrine of Ultra Vires is a fundamental rule of Company Law. It states that the objects of a company, as specified in its Memorandum of Association, can be departed from only to the extent permitted by the Act.

How do you use ultra vires in Word?

Meaning of ultra vires in English. beyond the legal power or authority of the person performing an action: The company's actions in entering into a contract with him were ultra vires, and therefore the contract was void. A shareholder could restrain the company from undertaking ultra vires activities.

What does the word Virial mean?

noun. vir·​i·​al. ˈvirēəl. plural -s. : half the product of the stress due to the attraction or repulsion between two particles in space times the distance between them or in the case of more than two particles half the sum of such products taken for the entire system.


What is the meaning of ultra vires and intra vires?

Ultra vires ('beyond the powers') is a Latin phrase used in law to describe an act which requires legal authority but is done without it. Its opposite, an act done under proper authority, is intra vires ('within the powers').

What is the meaning of ultra fine?

: fine to an extreme degree: such as. : extremely small, thin, or precise. ultrafine dust particles. an ultrafine needle. Color "curves," meanwhile, allow ultrafine adjustments and targeting of color and brightness ranges …

Does Ultra mean extremist?

Holding especially political views that deviate drastically and fundamentally from conventional or traditional beliefs: extreme, extremist, fanatic, fanatical, rabid, radical, revolutionary. Slang: far-out.


Does fine mean yes?

If you say that something is fine, you mean that it is satisfactory or acceptable.

What does Ultra mean in physics?

In physics, a particle is called ultrarelativistic when its speed is very close to the speed of light c. The expression for the relativistic energy of a particle with rest mass m and momentum p is given by.