Define and explain the doctrine of ultra vires

Assignment Help Business Law and Ethics

Reference no: EM13947339 , Length: word count:2500

Historically, companies were regarded as having limited legal capacity because they were artificial creations, rather than natural persons. Therefore, in the eyes of the law, a company was seen as capable of engaging only on those businesses and activities for which it had been established and which were identified in its objects clause.

By restricting the company's activities only to those matters set out in its objects, the shareholders and creditors could be fully informed about the scope of the company's commercial potential. Ultra vires means "beyond the power".

An ultra vires act is beyond the legal power of the holder of the power, and therefore invalid. If a company went beyond the powers stated in its objects clause, it was acting ultra vires. (Business and Corporations Law, paragraph 9.19 at page 504.)

Explain the effect on the doctrine of ultra vires of the changes made to Corporations Law from 1 July 1998. Do you agree that the doctrine of ultra vires has been substantially abolished?

Essay Outline for Students

Please note: This is a brief outline to assist students with what your essays should discuss. You are required to do your own research, use a number of primary sources and cite the relevant cases/legislation where appropriate. The prescribed text does not provide sufficient information on this topic to satisfactorily complete the essay.

The information provided is not exhaustive. It is merely intended to provide some assistance, there are other cases and information students may include in their essays. As a minimum, your essay should:

-(IN THE INTRODUCTION PART SHOULD BE DISCUSSED):-

History, Aims of the essay, our views, Briefly explain about the essay and Quote.

• Define and explain the doctrine of ultra vires.

• Discuss the doctrine as it originally operated under common law. See;Ashbury Carriage & Iron Co. v Riche (1875) - other cases may also be cited.

• Discuss how ultra vires was codified under the Corporations Act - what sections were relevant (e.g., s160 inter alia)
• Discuss the amendments to the Corporations Act from July 1 1998 - Which sections were repealed? (See e.g., s124(2), s125(1 and

2) What was the effect of the amendments?

• Defineultra vires in the narrow/broad sense. What do these terms mean? (e.g., corporate capacity, members and directors powers)

• Discuss whether the doctrine has been abolished entirely or substantially with reference to relevant cases. Cases students may refer to include: News Ltd v Australian Rugby Football League (1996), ANZ Executors and Trustee Co Ltd V Qintex Australia Pty Ltd (1990), Gambotto v WCP Ltd, Re Caratti Holding Co. Pty Ltd

• Conclude by summarising points raised in body of question. Based upon the changes to the July 1 1998 amendments to the Corporations Act and its application in various cases, does the doctrine still apply in Australia?

Reference no: EM13947339

Questions Cloud

Do you agree with socrates conclusion : In Apology, Socrates refers to himself as a gadfly. Explain how this metaphor is considered to be characteristic of the discipline of philosophy and its relationship with other academic and intellectual pursuits. Explain Socrates' argument for his..

What do you think the ex-dividend price will be : Ginger, Inc., has declared a $6.80 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Ginger stock sells for $94.70 per ..

Problem regarding the fuel cell dissipates : Determine the minimum velocity needed to sustain the fuel cell at Tc = 77°C, and the associated location of the wire. The air and large sur- roundings are at Too = Tsur = 27°C and the fuel cell dissipates Eg = 11 W. The fuel cell emissivity is s = 0...

What is the maximum lease payment-pretax cost savings : The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $1.4 million in annu..

Define and explain the doctrine of ultra vires : Define and explain the doctrine of ultra vires and discuss the doctrine as it originally operated under common law. See;Ashbury Carriage & Iron Co. v Riche (1875) - other cases may also be cited.

Local convection coefficient : Compute the local convection coefficient at the leading and trailing edges of the heated plate with and without an unheated starting length of t = 1 m.

Describe what the following lmc program does. : The contents in memory occasionally have to be moved to another area of memory. When that happens, the mailbox references must be adjusted so that the program continues to function properly.

What is pretax cost of debt and aftertax cost of debt : Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has a coupon rate of 10 percent annually. Wha..

Determine the heat transfer coefficients : Determine the heat transfer coefficients for the two cases, assuming the plate behaves as a spacewise isothermal object.

User Account

All Pages