(a) Explain the common law doctrine of ultra vires

(a) Explain the common law doctrine of ultra vires

1. Object clause

   • the most important of the memorandum
   • sets out those acts which the company has capacity to undertake.
   • Anything outside the objects and powers of a company is ultra vires

2. ULTRA VIRES

   • acts which are not specified in its objects clause in MOA of the co. or not incidential to their attainment
   • COMMON LAW POSITION
     • the transaction is void
     • & did not bind to co.
     • Ashbury Railway Carriage & Iron Co vs Riche
     • Re Jon Beauforte (London) Ltd
     • Re introduction Ltd