Doctrine Of Ultra Vires Ppt

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Doctrine of ultra vires ppt. Introduction ultra means beyond vires means powers an act of the company which beyond the objects clause. The doctrine of ultra vires however has its genesis in the english case of ashbury railway carriage and iron company ltd vs riche. Pdf doctrine of ultra vires in company law agrey. 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.

Company constitution company constitution memorandum of association is a document that specifies the relationship between the company and outsiders. An act ultra vires the company cannot be ratified even by the unanimous consent of all shareholders. If you continue browsing the site you agree to the use of cookies on this website. Meaning of doctrine of ultra vires.

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. There are three types of ultra vires acts which. Scribd is the world s largest social reading and publishing site. 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.

Doctrine of ultra vires under indiancompanies act 1956 presentation by mohit garg nischay bhargava bba 3rd sem a 2. Doctrine ofultra vires s. Ltd entered into a contract with mr riche for providing finance for the construction of railway line in belgium. In this case the directors of the company i e ashbury railway carriage iron co.

Types of ultra vires acts. Hence it is null and void. Abbl 3044 company law aa ma alteration of the constitution doctrine of ultra vires topic 3. An ultra vires act is void and cannot be ratified even if all the directors wish to ratify it.

The doctrine of ultra vires applies to the memorandum of association of a company. Doctrine of ultra vires free download as powerpoint presentation ppt pdf file pdf text file txt or view presentation slides online. 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.