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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It has been suggested that the use of the term ultra vires to cover all of the above sub-classifications is no longer appropriate.
35) In other words, ultra vires means unconstitutional.
Holding that each Order was ultra vires of Section 1 of the 1946 Act, the judge quashed them and their directions as unlawful.
This being established, it continues, there is no reason to pass verdict on the accusations of action ultra vires and/or misuse of powers.
This may result in a remedy available for an individual adversely affected by the ultra vires act.
If it emerges that it is acting ultra vires, for many retailers it will be a huge relief.
The Hospital's action in forming The Foundation was held to be an ultra vires usurpation of the authority of the Fiscal Court.
During the foot-and-mouth epidemic of 2001, the Government engaged in ultra vires (beyond its power) action on a huge scale, for it had no power to slaughter the majority of the seven million animals it nevertheless did slaughter in the course of the contiguous cull," says their report.
Due to the fact that the Respondents represent and constitute the only self-styled "superpower" sitting as one of the five Permanent Members of the Security Council, the Respondents have repeatedly and abusively used and threatened to use their voting power and their so-called "veto power" to continue the international economic embargo upon Iraq in a manner that is ultra vires the "primary responsibility" for the maintenance of international peace and security that has been conferred upon the Security Council by Article 24(1) and (2) of the United Nations Charter: "2.
1) Particular emphasis is placed on problems of ultra vires conduct of state officials.