Doctrine Of Ultra Vires Meaning In Kannada

653 as decided by the house of lords.

Doctrine of ultra vires meaning in kannada. Ultra vires acts fall outside the powers that are specifically listed in a corporate charter or state law. 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. Acts that are intra vires may equivalently be termed valid and those that are ultra vires termed invalid. Meaning of 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. 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. These acts are not binding on the company. In this case the directors of the company i e ashbury railway carriage iron co.

The doctrine of ultra vires applies to the memorandum of association of a company. Having seen the rational behind the ultra vires doctrine and the rules developed by courts to temper this doctrine it should be understood that there is always a thin line separating what is incidental or consequential to a certain power already granted and what is clearly ultra vires and as a result there is a lot of subjectivity involved in deciding what is ultra vires and what is not. The doctrine of ultra vires however has its genesis in the english case of ashbury railway carriage and iron company ltd vs riche. An act ultra vires the company cannot be ratified even by the unanimous consent of all shareholders.

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. Its opposite an act done under proper authority is intra vires within the powers. Any act that lies beyond the authority of a corporation to perform. Beyond the powers is a latin phrase used in law to describe an act which requires legal authority but is done without it.

The doctrine of ultra vires could not established its roots. There are three types of ultra vires acts which. Effects of ultra vires transactions doctrine of ultra vires. The ultra vires acts are null and void ab initio.

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. Summing up the 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. Neither the company can sue nor it can be sued for such acts ashbury railway carriage and iron company v.

Hence it is null and void.