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.
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17, 2013 was an ultra vires act and has no legal value because a prosecutor had put himself in the position of a judge.
An ultra vires act is defined as one beyond the scope of one's legal authority or power.
It's a gray area, and that's why it doesn't seem to amount to an ultra vires act.
In law, "confirmation" is needed to validate or ratify an ultra vires act, which is an act needing prior authority from a corporation's board but did not have such authority when it was performed.
Unless, of course, the ultra vires act is not within the Charter or powers of the corporation, in which case it is void ab initio, hence, cannot be confirmed or ratified.
This may result in a remedy available for an individual adversely affected by the ultra vires act.
By straying into it, a defense lawyer again risks committing both an error and an 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.
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.
States' tort liability generally is limited by the doctrine of sovereign immunity, but some state courts have nonetheless held that state instrumentalities are not immune from tort liability for ultra vires acts.
No matter how the conclusion is drawn, one wonders whether any useful purpose is served by qualifying intra vires acts and ultra vires acts equally as acts of the state, if, all other conditions being equal, different legal consequences ensue in terms of state responsibility.