Doctrine Of Ultra Vires In Company Law 2013

It can be concluded that an uv act is void and cannot be ratified.

Doctrine of ultra vires in company law 2013. Pdf doctrine of ultra vires in company law agrey. Any action done outside purview of either is said to be ultra vires or improper or beyond the legitimate scope. 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. 653 as decided by the house of lords.

Liability for ultra vires acts. A the activity in the course of which it has been committed falls within the scope of the mem. 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 doctrine of ultra vires could not be established firmly until 1875 when the directors c of the ashbury railway carriage and iron company limited v hector riche 1874 75 l r.

Doctrine of ultra vires has been developed to protect the investors and creditors of the company. The doctrine of ultra vires in companies act 2013 section 4 1 c of the companies act 2013 states that all the objects for which incorporation of the company is proposed any other matter which is considered necessary in its furtherance should be stated in the memorandum of the company. B that the servant committed the tort. 6 ultra vires torts a company can be made liable for an ultra vires tort committed provided it is shown that.

The article shall delve into the questions such as meaning of the rule its application in various areas of company law and exceptions to the rule. And under section 245 1 b 5 to restrain the company from committing the breach of any provision of company s memorandum or articles. This article endeavours to analyse the doctrine of ultra vires under company law and more specifically under the companies act 2013. Hence if the company does an act or enters into a contract beyond the powers of the directors and or.

The doctrine of ultra vires could not established its roots. Further the new companies act 2013 section 245 1 a aims to restrain the company from committing an act which is ultra vires the articles or memorandum of the company. Indian case laws the doctrine of ultra vires is a fundamental rule of company law. Every company is bound to perform in compliance of it s memorandum of association articles of association and the companies act 2013.

Ultra vires doctrine in the companies act 1965. 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.