Explain the doctrine of 'Ultra Vires' and its implications on companies.
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Elements of Law and Legal AptitudeSubjectiveQuestion 5783 of 6
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Detailed Solution & Explanation
The doctrine of 'Ultra Vires' is a legal principle that states that a company can only perform actions that are within its authorized powers as defined in its Memorandum of Association. If a company performs an action that is beyond its authorized powers, it is considered 'Ultra Vires' and is void. This doctrine has significant implications for companies, as it limits their ability to engage in activities that are not authorized by their Memorandum of Association.
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