The doctrine of 'ultra vires' as applied to companies means:

Question

Accepted Answer

A. any act outside the powers conferred by the Memorandum of Association is void and cannot bind the company

1. The doctrine of 'ultra vires' (Latin: 'beyond the powers') was articulated in Ashbury Railway Carriage & Iron Co. v. Riche, (1875) LR 7 HL 653.
2. The objects clause in MoA defines the limits of the company's capacity. Any act OUTSIDE those objects is ULTRA VIRES the company and VOID — incapable of ratification even by ALL the shareholders.
3. Indian law: Sections 4(1)(c) Companies Act 2013 requires objects clause; Section 245 NCLT cognizance.
4. The doctrine has been diluted by allowing wide objects clauses; the 2013 Act removed the requirement of 'incidental and ancillary' object distinctions.
5. Hence option A is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Ashbury Railway Carriage Co. v. Riche, (1875) LR 7 HL 653; Companies Act 2013, Section 4(1)(c)_

Answer

any act inside the scope of objects can still be ratified by the Board of Directors retroactively

Answer

any act by a director outside his authority can be ratified by another director without notice

Answer

any contract by a company is enforceable, regardless of any limitations of its memorandum