13 Replies
Abhishekh Chauragade
(23 Points)
Replied 17 September 2017
Atul Birader
(28 Points)
Replied 17 September 2017
Abhishekh Chauragade
(23 Points)
Replied 17 September 2017
Shrijay Sheth
(Co-Founder)
(2692 Points)
Replied 21 September 2017
The phrase “Ultra Vires” means “Beyond Powers.” The Doctrine of Ultra Vires stops the company to act beyond the power granted by the constitutional documents i.e. MoA and AoA. The MoA of the company as per section 13 of the Companies Act, 2013, prescribes the range of activities to be carried on by the company. The engagement into activities beyond the scope provided by the MoA is to be treated as Ultra Vires act of the company.
The directors of the company also have certain powers prescribed by the Act or by the Articles of the company. The actions taken beyond the powers of the directors are said to be Ultra Vires.
The company along with the officer in default shall be liable for the ultra vires acts. The ultra vires transaction cannot be ratified by shareholders, even if they wish it to be ratified.
Shrijay Sheth
(Co-Founder)
(2692 Points)
Replied 21 September 2017
The phrase “Ultra Vires” means “Beyond Powers.” The Doctrine of Ultra Vires stops the company to act beyond the power granted by the constitutional documents i.e. MoA and AoA. The MoA of the company as per section 13 of the Companies Act, 2013, prescribes the range of activities to be carried on by the company. The engagement into activities beyond the scope provided by the MoA is to be treated as Ultra Vires act of the company.
The directors of the company also have certain powers prescribed by the Act or by the Articles of the company. The actions taken beyond the powers of the directors are said to be Ultra Vires.
The company along with the officer in default shall be liable for the ultra vires acts. The ultra vires transaction cannot be ratified by shareholders, even if they wish it to be ratified.
Shrijay Sheth
(Co-Founder)
(2692 Points)
Replied 21 September 2017
The phrase “Ultra Vires” means “Beyond Powers.” The Doctrine of Ultra Vires stops the company to act beyond the power granted by the constitutional documents i.e. MoA and AoA. The MoA of the company as per section 13 of the Companies Act, 2013, prescribes the range of activities to be carried on by the company. The engagement into activities beyond the scope provided by the MoA is to be treated as Ultra Vires act of the company.
The directors of the company also have certain powers prescribed by the Act or by the Articles of the company. The actions taken beyond the powers of the directors are said to be Ultra Vires.
The company along with the officer in default shall be liable for the ultra vires acts. The ultra vires transaction cannot be ratified by shareholders, even if they wish it to be ratified.
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