Ultra vires activities(redirected from Beyond the Powers Activity)
Ultra vires activities
Corporate actions and operations that are not sanctioned by corporate charter, sometimes leading to shareholder lawsuits.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved