Doctrine Of Ultra Vires Meaning In Telugu

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

Doctrine of ultra vires meaning in telugu. 653 as decided by the house of lords. Types of ultra vires acts. The doctrine of ultra vires however has its genesis in the english case of ashbury railway carriage and iron company ltd vs riche. Doctrine of ultra vires the memorandum being the constitution of the company sets out the principal objectives powers scope and its area of operation both internal and external.

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. Its opposite an act done under proper authority is intra vires within the powers. 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. Acts that are intra vires may equivalently be termed valid and those that are ultra vires termed invalid.

The doctrine of ultra vires could not established its roots. Ltd entered into a contract with mr riche for providing finance for the construction of railway line in belgium. Beyond the powers is a latin phrase used in law to describe an act which requires legal authority but is done without it. Hence it is null and void.

Meaning of doctrine of ultra vires. There are three types of ultra vires acts which. 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. 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.

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. An act ultra vires the company cannot be ratified even by the unanimous consent of all shareholders. A company therefore can do anything within the scope of the powers specified in the memorandum. 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.

Doctrine of ultra vires has provides protection to the investors and creditors o the company.