General Studies · Doctrine of Ultra Vires
What is the Doctrine of 'Ultra Vires' in Company Law?
- 1It protects minority shareholders from oppressive or discriminatory practices by the majority.
- 2It states that any act performed by a company beyond the scope of its constitutional powers defined in the Memorandum of Association is void.✓
- 3It renders a contract void if it mandates a party to perform an unlawful activity.
- 4It restricts the administrative and operational powers of the company's Board of Directors.
Correct answer
It states that any act performed by a company beyond the scope of its constitutional powers defined in the Memorandum of Association is void.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for General Studies?
Practice full-length General Studies mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Doctrine of Ultra Vires?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Doctrine of Ultra Vires