Justify the following statement: Ultra-vires acts are null and void.
Justify the following statement:
Ultra-vires acts are null and void.
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- A Memorandum of Association of a company is a basic charter of the company.
- If a company departs from its Memorandum of Association such an act is ultra-vires.
- The doctrine of ultra vires is a fundamental rule of company law.
- An act legally in itself but not authorized by the object clause of Memorandum of Association of a company is ultra-vires.
- Hence if the company does an act or enters into a contract beyond the powers of the company then the act is said to be null and void.
- The company cannot sue on an ultravires transaction or it cannot be sued.
- Thus, I agree with the above statement.
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