The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek

A company which owes its incorporation to statutory authority Cannot effectively do anything beyond the powers expressly or impliedly conferred upon it by its statute or memorandum of association. Any act beyond that would be ineffective even if it were to be agreed upon by all members. A company, t...

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Bibliographic Details
Main Author:	Tonek, Margare Rossy
Format:	Student Project
Language:	English
Published:	Faculty of Law 1985
Subjects:	K Law in general. Comparative and uniform law. Jurisprudence
Online Access:	http://ir.uitm.edu.my/id/eprint/28077/ http://ir.uitm.edu.my/id/eprint/28077/1/PPd_MARGARE%20ROSSY%20TONEK%20LW%2085_5.pdf

id	uitm-28077
recordtype	eprints
spelling	uitm-280772020-01-31T07:49:56Z http://ir.uitm.edu.my/id/eprint/28077/ The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek Tonek, Margare Rossy K Law in general. Comparative and uniform law. Jurisprudence A company which owes its incorporation to statutory authority Cannot effectively do anything beyond the powers expressly or impliedly conferred upon it by its statute or memorandum of association. Any act beyond that would be ineffective even if it were to be agreed upon by all members. A company, therefore, unlike a natural person has limited capacity. Any purported acts beyond the stipulated clause would be considered ultra-vires and be absolutely void. 1 The purpose of this restriction is two-fold : First, to protect investors in the company so that they may know the objects in which their money is employed; and secondly, to protect the credit on by ensuring that the company's funds, to which they look for payment, are not utilised for unauthorised activities. 2 The term ultra vires is also used to describe the situation when the directors have exceeded the authority delegated to them. Compare this with the position when a company does an act outside its memorandum or article. The effects of these acts by the company are' as follows respectively When a company exceeds its powers, it is not bound by its contracts because it lacks legal capacity to incur responsibility for it. Similarly, when the directors go beyond their powers, the company is not bound because their agents have exceeded their authority. However, unless the company's own powers are exceeded, no question of capacity arises and the company may ratify what the directors have done, and may be unable to set up the director's lack of actual authority when they have acted within their usual or ostensible authority.3 Faculty of Law 1985 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/28077/1/PPd_MARGARE%20ROSSY%20TONEK%20LW%2085_5.pdf Tonek, Margare Rossy (1985) The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	K Law in general. Comparative and uniform law. Jurisprudence
spellingShingle	K Law in general. Comparative and uniform law. Jurisprudence Tonek, Margare Rossy The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
description	A company which owes its incorporation to statutory authority Cannot effectively do anything beyond the powers expressly or impliedly conferred upon it by its statute or memorandum of association. Any act beyond that would be ineffective even if it were to be agreed upon by all members. A company, therefore, unlike a natural person has limited capacity. Any purported acts beyond the stipulated clause would be considered ultra-vires and be absolutely void. 1 The purpose of this restriction is two-fold : First, to protect investors in the company so that they may know the objects in which their money is employed; and secondly, to protect the credit on by ensuring that the company's funds, to which they look for payment, are not utilised for unauthorised activities. 2 The term ultra vires is also used to describe the situation when the directors have exceeded the authority delegated to them. Compare this with the position when a company does an act outside its memorandum or article. The effects of these acts by the company are' as follows respectively When a company exceeds its powers, it is not bound by its contracts because it lacks legal capacity to incur responsibility for it. Similarly, when the directors go beyond their powers, the company is not bound because their agents have exceeded their authority. However, unless the company's own powers are exceeded, no question of capacity arises and the company may ratify what the directors have done, and may be unable to set up the director's lack of actual authority when they have acted within their usual or ostensible authority.3
format	Student Project
author	Tonek, Margare Rossy
author_facet	Tonek, Margare Rossy
author_sort	Tonek, Margare Rossy
title	The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
title_short	The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
title_full	The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
title_fullStr	The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
title_full_unstemmed	The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek
title_sort	ultra vires doctrine does - it exist in malaysia? / margare rossy tonek
publisher	Faculty of Law
publishDate	1985
url	http://ir.uitm.edu.my/id/eprint/28077/ http://ir.uitm.edu.my/id/eprint/28077/1/PPd_MARGARE%20ROSSY%20TONEK%20LW%2085_5.pdf
first_indexed	2023-09-18T23:19:33Z
last_indexed	2023-09-18T23:19:33Z
_version_	1777419339725537280

The ultra vires doctrine does - it exist in Malaysia? / Margare Rossy Tonek

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