Abstract
Ultra vires is the term used for the acts of a company beyond the powers prescribed by the object clause of the memorandum. Ultra vires acts of a company are void and cannot be ratified even if all the directors wish to ratify it. The development of the doctrine of ultra vires can be traced back to the establishment of limited liability principle in 1855. However, the doctrine became more stern and solid after the Ashbury railway carriage case of 1885. The doctrine of ultra vires was developed to protect the creditors and investors. The doctrine of ultra vires was applicable in all countries, however in modern days; it has been abolished in the developed countries. The doctrine is still observed by the developing countries.
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