ultra vires


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Related to ultra vires: Ultra Vires Act

Ultra Vires Activities

Activities in which a publicly-traded company engages that are outside the powers delegated to it in its charter and/or bylaws. Every publicly-traded company has a charter and bylaws, which both outline the powers of executives and the board of directors and actions they are allowed to take. While both the charter and the bylaws can be amended by shareholders, companies sometimes take actions outside the scope of their charters without first receiving permission to do so. If shareholders deem ultra vires activities to be harmful to them or to have the potential of harm, they may sue the company for damages.

ultra vires

(of an action by a JOINT-STOCK COMPANY) exceeding its powers as defined in its MEMORANDUM OF ASSOCIATION. For example, if a company's memorandum authorizes it to trade in the motorcar business, and its directors then set up an ice-cream business, then they may be regarded as trading ultra vires and the company's CONTRACTS with ice-cream suppliers and customers may be regarded as void. To avoid falling foul of the ultra vires doctrine, companies now tend to draw up very wide-ranging business powers in the MEMORANDUM OF ASSOCIATION.
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Consequently, ultra vires was gradually abandoned as investor-owned firms came to dominate the corporate landscape.
If that analysis is correct, then there may have been a majority ratio in Roncarelli to the effect that where a public authority acts illegally or ultra vires and causes financial loss to the affected person, absent statutory protection in various forms, that action constitutes faute and attracts liability under article 1053 C.
By contrast, common law critics of the traditional view have questioned whether the ultra vires doctrine should still be considered the foundation of judicial review.
40) Steel Seizure therefore reinforces the understanding that judicial review is vital, certainly as to subordinate executive actors, in identifying executive action that is ultra vires.
These are essentially characterized as jurisdictional questions and therefore involve determination of whether the impugned act is ultra vires.
By passing the 2002 Act, the Government has effectively acknowledged that this was so, for the Act seeks to make precisely that which was ultra vires in the past legal in the future, in complete disregard of the compelling reasons for the previous withholding of such powers.
That as a direct result of the illegal and ultra vires conduct by the Respondents at the Security Council, the Applicants have nowhere else to turn for Relief except to the General Assembly, the Secretary General, the Economic
Only if the action of the commission can be proved to be ultra vires (beyond its legal authority or power) can the matter be brought up at the next Assembly.
The radical political activities thus were ultra vires, and the alleged charter violation, the officials asserted, constituted fraud.
If this argument is successful in showing that the responsible person acted ultra vires, it will be difficult for the IRS to prove that the individual was acting as "agent" or "in behalf" of the corporation when his actions were unknown and unauthorized by the corporation and were in breach of the fiduciary duties incumbent on an officer/director.
The lawsuit states, "OR-OSHA has engaged in activities that are unlawful, ultra vires, defamatory, negligent,and retaliatory in nature.