Doctrine Of Ultra Vires In Administrative Law Notes
The basic idea underpinning the ultra vires doctrine uv is that government decisions actions and powers must not be made in excess of its lawful powers.
Doctrine of ultra vires in administrative law notes. 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. Melissa bell law and government notes october 18 lecture ultra vires meaning of ultra vires the ultra vires concept generally when body acts beyond their power. The doctrine of ultra vires is a fundamental rule of company law. However both are void.
Lecture 2 notes 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. Notes for lecture 2 of law and government. Types of ultra vires acts.
1 narrow simple uv where decisions are not authorised by the law at all. The doctrine envisages that an authority can exercise only so much power as is conferred on it by law. 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. Grounds ultra vires ultra vires.
There are 2 categories of uv. There are three types of ultra vires acts which. The motive behind the doctrine of ultra vires is to protect the investors and creditors of the company. There is no legal power to do.
The doctrine of ultra vires is the basic doctrine in administrative 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. The ultra vires act is completely different from an illegal act. The company being an artificial person its objects and powers are specified in the memorandum of association moa of the 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. 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. Section associated with the doctrine of ultra vires of the companies act is section 20 1 20 2 a b c and 20 3. The memorandum is the most crucial document for a company.
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. Ultra vires doctrine in the companies act 1965.