Doctrine Of Ultra Vires Meaning In Tamil

653 as decided by the house of lords.

Doctrine of ultra vires meaning in tamil. Doctrine of ultra vires has provides protection to the investors and creditors o the company. Such operations of the company can be subjected to penalty. 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. Indian companies act 2013.

The doctrine of ultra vires however has its genesis in the english case of ashbury railway carriage and iron company ltd vs riche. Its opposite an act done under proper authority is intra vires within the powers. 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. Types of ultra vires acts.

The doctrine of ultra vires applies to the memorandum of association of a company. The doctrine of ultra vires acts against companies was evolved in the case ashbury railway carriage iron company ltd v. Beyond the powers is a latin phrase used in law to describe an act which requires legal authority but is done without it. Ultra vires the memorandum by the company acts performed by the company that are beyond the powers granted to it in the memorandum.

Meaning of doctrine of ultra vires. There are three types of ultra vires acts which outlined below. 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 is a fundamental rule of company law.

Ultra vires acts and their effects lecture 4 of 8 duration. 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. Ltd entered into a contract with mr riche for providing finance for the construction of railway line in belgium. 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.

In this case the directors of the company i e ashbury railway carriage iron co. Any action done outside purview of either is said to be ultra vires or improper or beyond the legitimate scope. Acts that are intra vires may equivalently be termed valid and those that are ultra vires termed invalid. 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.