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HomeCA InterlawIncorporation of Company › If a company acts ultra vires its memorandum, su…

If a company acts ultra vires its memorandum, such an act is:

Avoidable at the company's option
Bautomatically legal after one year
Cvoid and cannot be ratified even by all shareholders
Dvalid if profitable
Answer & Solution
Correct answer: C. void and cannot be ratified even by all shareholders
An ultra vires act is void and cannot be ratified even by all shareholders.
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