The doctrine of ultravires refers to actions that are beyond the legal powers or authority of a company. There are 3 purposes or objectives of doctrine ultravires:
1. Protect interest of shareholders
2. Protect interest of creditors & third party
3. Provides boundaries to the company’s director.
Types of ultravires act as explained below:
1. Act which are ultravires to company act
2. Act which are ultravires to memorandum
3. Act which are ultravires to article of association but intravires to memorandum
4. Act which are ultravires to directors but intravires to memorandum.
Also explained effects and consequences of ultravires act in detailed with exceptions.
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