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Question
Select the correct answer from the option given below and rewrite the sentence.
_________ acts are void or legally ineffective.
Options
Object clause
Main Object
Ultra Vires
Solution
Ultra Vires acts are void or legally ineffective.
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RELATED QUESTIONS
Select the correct answer from the option given below and rewrite the sentence.
Any act done by the company beyond the powers of Memorandum is called as _______.
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_________ contains rules and regulations for internal management of the company
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Articles establishes relationship between company and ________.
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Every subscriber who signs the Memorandum must also sign the Articles.
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Actions can be taken against a company or its officers for misstatements in prospectus.
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Complete the sentence.
Any act done by the company which goes beyond the powers of Memorandum of Association will be calledas _________
Complete the sentence.
The document which contains the rules and regulations governing the internal management of a company is called _________
Study the following case/situation and express your opinion.
Mr. A entered into a contract with Star Limited company and as advance payment gave a cheque of ₹ 1 lac to a Director Mr. Sam. Mr. Sam is not the Managing Director. Articles state that only the MD is authorized to sign any contracts or receive any payments on behalf of the company.
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- Can Mr. Sam’s action be called as Ultra Vires? Why?
Study the following case/situation and express your opinion:
The object clause of Memorandum of a company stated the main object as the manufacturing of plastic chairs and tables and any other activity in furtherance of achievement of its main activity. The Board of Directors wants to now also produce TV. Serials and feels that the shareholders may give their permission.
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b) How can the object clause of the company be altered?
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Memorandum of association and articles of association.
Justify the following statement.
The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.
