Ultra vires activities

(redirected from Ultra Vires Act)

Ultra vires activities

Corporate actions and operations that are not sanctioned by corporate charter, sometimes leading to shareholder lawsuits.

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.
Mentioned in ?
References in periodicals archive ?
'Any grant of the abovementioned bonuses without the approval of the President will be considered as an ultra vires act and thus, constitutes an illegal disbursement of public funds.
"Any grant of the above-mentioned bonuses without the approval of the President will be considered as an ultra vires act and thus, constitutes an illegal disbursement of public funds.
The member-investors need not do anything other than invest money and go to the office of Kapa to receive the monthly profits promised to them...KAPA in engaging itself in offering/selling securities in the form of investment contrast with the necessary permit/registration under Section 8.1 of the SRC commits an ultra vires act exceeding the privilege granted to it.
For the Supreme Court to ignore the clearly demarcated zones of constitutional power and encroach on areas where it has been specifically excluded is an ultra vires act.
17, 2013 was an ultra vires act and has no legal value because a prosecutor had put himself in the position of a judge.
"It's a gray area, and that's why it doesn't seem to amount to an ultra vires act. For that you'd need more than a grey area; you'd need the blazing light."
This may result in a remedy available for an individual adversely affected by the ultra vires act.
[73] In addition, Israel's changing of local law to make water a public commodity may also classify as an ultra vires act under Article 43, which requires an occupant to take measures necessary for ensuring public order and civil life while "respecting the laws in force" prior to the occupation "unless absolutely prevented." Israel's advocates may argue with some validity that the scarcity of resources in the region required administrative control to prevent damage to the water table, thus qualifying Israel's actions as a means of preserving public order.
While the reciprocal-fairness concern normally present in takings cases is absent in ultra vires cases, the "rogue" character of the ultra vires act certainly arouses moral indignation.
In addressing the claim of good faith underscored by the petitioners, the COA CP pointed out that the procurement of medicines "is an ultra vires act' that violates Republic Act 9184 or the Government Procurement law.
They also concluded the 'tying-up' of payment of SSS contribution to OEC issuance is an ultra vires act since it is not stipulated in the provision of RA 11199.
'Considering that nowhere it is stated in the primary purpose that Yeheey is authorized to engage in the selling or offering for sale of securities to the public, the activity of YEHEEY of selling or offering for sale of investments is considered an ultra vires act and therefore constitute serious misrepresentation,' EIPD noted.