Doctrine Of Ultra Vires In Administrative Law Slideshare

Doctrine ofultra vires s.

Doctrine of ultra vires in administrative law slideshare. There are three types of ultra vires acts which. No notes for slide. This doctrine can be considered as the central principle in the whole of administrative law. Exceptions to the doctrine of ultra vires a brief analysis of the doctrine of ultra vires with regard to its consequences would reveal that only those activities of the company shall be valid i e intra vires which are.

The memorandum is the most crucial document for a company. 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. The company being an artificial person its objects and powers are specified in the memorandum of association moa of the company. Doctrine of ultra vires 1.

The concept of ultra vires in the company law the ultra vires mean to go beyond the object clause of a memorandum of association of a company. A essential for the fulfillment of the objects stated in the main objects clause of the memorandum. There is no separate legal provision in the indian law anywhere for ultra vires transactions. The motive behind the doctrine of ultra vires is to protect the investors and creditors of the company.

The ultra vires act is void act and therefore it cannot be ratified even if all the directors of the company want to ratify the same. If the administrative authority fails to follow required procedure prescribed by parent act or by the general rule it is known as procedural ultra vires. Summing up the doctrine of ultra vires. An act ultra vires the company cannot be ratified even by the unanimous consent of all shareholders.

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. Types of ultra vires acts. The doctrine envisages that an authority can exercise only so much power as is conferred on it by law. An act legal in itself but not authorized by the object clause of the memorandum of association of a company or statute is ultra vires the company.

Section 20 1 provides no action prosecuted as an act of shall be invalid by reason only the fact that the company does not have the ability or authority to act. B incidental or consequential or reasonably within its permissible. To apply the doctrine of ultra vires the first question for the courts to decide is whether the provision in the act prescribing the procedure is mandatory or directory. The doctrine of ultra vires is produced by the constitutional principles of the rule of law the sovereignty of parliament and the independence of the judiciary.

However both are void. The ultra vires act is completely different from an illegal act. Section associated with the doctrine of ultra vires of the companies act is section 20 1 20 2 a b c and 20 3.