Doctrine Of Ultra Vires Meaning In Kannada

653 as decided by the house of lords.

Doctrine of ultra vires meaning in kannada. Acts that are intra vires may equivalently be termed valid and those that are ultra vires termed invalid. There are three types of ultra vires acts which. Meaning of doctrine of ultra vires. In this case the directors of the company i e ashbury railway carriage iron co.

Beyond the powers is a latin phrase used in law to describe an act which requires legal authority but is done without it. 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. The doctrine of ultra vires is which adopted from a latin word is the basic doctrine in the law of administration meaning beyond its power or beyond the power of any type of action or any transaction beyond the scope of any organization mainly the company or the authority endowed upon a manager of the company will fall under the ambit of the doctrine of ultra vires and will be. Summing up the doctrine of ultra vires.

Indian legal system civil laws company law the doctrine of ultra vires anything which is beyond the authority or power is called 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.

It established its roots in 1875 when the directors and company of the ashbury railway carriage and iron company limited v hector riche 1874 75 l r. Doctrine of ultra vires has provides protection to the investors and creditors o the company. The doctrine of ultra vires could not established its roots. Its opposite an act done under proper authority is intra vires within the powers.

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 any activity done out of the purview of the memorandum. Since the application of the european community law in england the doctrine of ultra vires stand restricted to a certain extent in india the original of the doctrine dates back to 1866 when the bombay high court applied it to a joint stock. 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 a purpose other than those stated in the objects clause of its memorandum.

The doctrine of ultra vires applies to the memorandum of association of a company.