Supposing a company does something not stated in MOA should that be accounted in the books.
Is it Ultra vires the MOA
What is the impact of the same with reference to Companies Act
K.Arun Kumar (Article Assisstant ) (29 Points)
02 August 2009Supposing a company does something not stated in MOA should that be accounted in the books.
Is it Ultra vires the MOA
What is the impact of the same with reference to Companies Act
pratiksompura
(Student)
(32 Points)
Replied 02 August 2009
Any thing done beyond what is stated in MOA is ultra vires. The ultra vires act is void and unenforceable by company. Directors are personally liable for the ultra vires act to the third party.
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