Question

An act is said to be ultra vires Company when it is beyond the powers___________.

• A. of the Company,
• B. of the Directors,
• C. of the Directors but not the Company,
• D. Conferred on the Company by the Articles.

Answer 1

The correct option is D Conferred on the Company by the Articles.

In corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, articles of incorporation or in a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar founding documents.