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Ultravires
FromWikipedia,thefreeencyclopedia

UltraviresisaLatinphrasemeaning"beyondthepowers".Ifanactrequireslegalauthorityanditis
donewithsuchauthority,itischaracterisedinlawasintravires("withinthepowers").Ifitisdone
withoutsuchauthority,itisultravires.Actsthatareintraviresmayequivalentlybetermed"valid"and
thosethatareultravires"invalid".

Contents
1 Corporatelaw
1.1 UnitedKingdom
2 Constitutionallaw
3 Administrativelaw
3.1 UnitedKingdom
4 Seealso
5 Notes
6 References

Corporatelaw
Incorporatelaw,ultraviresdescribesactsattemptedbyacorporationthatarebeyondthescopeof
powersgrantedbythecorporation'sobjectsclause,articlesofincorporationorinaclauseinitsBylaws,
inthelawsauthorizingacorporation'sformation,orsimilarfoundingdocuments.Actsattemptedbya
corporationthatarebeyondthescopeofitscharterarevoidorvoidable.
1.Anultravirestransactioncannotberatifiedbyshareholders,eveniftheywishittoberatified.
2.Thedoctrineofestoppelusuallyprecludedrelianceonthedefenseofultravireswherethe
transactionwasfullyperformedbyoneparty.
3.Afortiori,atransactionwhichwasfullyperformedbybothpartiescouldnotbeattacked.
4.Ifthecontractwasfullyexecutory,thedefenseofultraviresmightberaisedbyeitherparty.
5.Ifthecontractwaspartiallyperformed,andtheperformancewasheldtobeinsufficienttobring
thedoctrineofestoppelintoplay,asuitforquasicontractforrecoveryofbenefitsconferredwas
available.
6.Ifanagentofthecorporationcommittedatortwithinthescopeofhisorheremployment,the
corporationcouldnotdefendonthegroundtheactwasultravires.
Severalmoderndevelopmentsrelatingtocorporateformationhavelimitedtheprobabilitythatultravires
actswilloccur.Exceptinthecaseofnonprofitcorporations(includingmunicipalcorporations),this
legaldoctrineisobsolescentwithinrecentyears,almostallbusinesscorporationsarecharteredtoallow
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themtotransactanylawfulbusiness.TheModelBusinessCorporationActoftheUnitedStatesstates
that:"Thevalidityofcorporateactionmaynotbechallengedonthegroundthatthecorporationlacksor
lackedpowertoact."Thedoctrinestillhassomelifeamongnonprofitcorporationsorstatecreated
corporatebodiesestablishedforaspecificpublicpurpose,suchasuniversitiesorcharities.
AccordingtoAmericanlaws,theconceptofultravirescanstillariseinthefollowingkindsofactivities
insomestates:
1.Charitableorpoliticalcontributions
2.Guarantyofindebtednessofanother
3.Loanstoofficersordirectors
4.Pensions,bonuses,stockoptionplans,jobseverancepayments,andotherfringebenefits
5.Thepowertoacquiresharesofothercorporations
6.Thepowertoenterintoapartnership

UnitedKingdom
IntheUnitedKingdom,theCompaniesAct2006sections31and39greatlyreducedtheapplicabilityof
ultraviresincorporatelaw,althoughitcanstillapplyinrelationtocharitiesandashareholdermay
applyforaninjunction,inadvanceonly,topreventanactwhichisclaimedtobeultravires.
Inmanyjurisdictions,suchasAustralia,legislationprovidesthatacorporationhasallthepowersofa
naturalperson[1]plusothersalso,thevalidityofactswhicharemadeultraviresispreserved.[2]

Constitutionallaw
Underconstitutionallaw,particularlyinCanadaandtheUnitedStates,constitutionsgivefederaland
provincialorstategovernmentsvariouspowers.Togooutsidethosepowerswouldbeultraviresfor
example,althoughthecourtdidnotusetheterminstrikingdownafederallawinUnitedStatesv.Lopez
onthegroundsthatitexceededtheConstitutionalauthorityofCongress,theSupremeCourtstill
declaredthelawtobeultravires.[3]
AccordingtoArticle15.2oftheIrishconstitution,theOireachtas(parliament)isthesolelawmaking
bodyintheRepublicofIreland.InthecaseofCityViewPressvAnCo,however,theIrishSupreme
CourtheldthattheOireachtasmaydelegatecertainpowerstosubordinatebodiesthroughprimary
legislation,solongasthesedelegatedpowersallowthedelegateeonlytofurthertheprinciplesand
policieslaiddownbytheOireachtasinprimarylegislationandnotcraftnewprinciplesorpolicies
themselves.Anypieceofprimarylegislationthatgrantsthepowertomakepublicpolicytoabodyother
thantheOireachtasisunconstitutionalhowever,asthereisapresumptioninIrishconstitutionallawthat
theOireachtasactswithintheconfinesoftheConstitution,anylegislationpassedbytheOireachtasmust
beinterpretedinsuchawayastobeconstitutionallyvalidwherepossible.
Thus,inanumberofcaseswherebodiesotherthantheOireachtaswerefoundtohaveusedpowers
grantedtothembyprimarylegislationtomakepublicpolicy,theimpugnedprimarylegislationwasread
insuchawaythatitwouldnothavetheeffectofallowingasubordinatebodytomakepublicpolicy.In
thesecases,theprimarylegislationwasheldtobeconstitutional,butthesubordinateorsecondary
legislation,whichamountedtocreationofpublicpolicy,washeldtobeultravirestheprimary
legislationandwasstruckdown.

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InUKconstitutionallaw,ultraviresdescribespatents,ordinancesandthelikeenactedunderthe
prerogativepowersoftheCrownthatcontradictstatutesenactedbytheKinginParliament.Almost
unheardofinmoderntimes,ultraviresactsbytheCrownoritsservantswerepreviouslyamajorthreat
totheruleoflaw.
BoddingtonvBritishTransportPoliceisanexampleofanappealheardbyHouseofLordsthat
contestedthatabylawwasbeyondthepowersconferredtoitundersection67oftheTransportAct
1962.[4]

Administrativelaw
Inadministrativelaw,anactmaybejudiciallyreviewableforultraviresinanarroworbroadsense.
Narrowultraviresappliesifanadministratordidnothavethesubstantivepowertomakeadecisionorit
waswroughtwithproceduraldefects.Broadultraviresappliesifthereisanabuseofpower(e.g.,
Wednesburyunreasonablenessorbadfaith)orafailuretoexerciseanadministrativediscretion(e.g.,
actingatthebehestofanotherorunlawfullyapplyingagovernmentpolicy)orapplicationof
discretionarypowersinirrationalandwrongway.[5]Eitherdoctrinemayentitleaclaimanttovarious
prerogativewrits,equitableremediesorstatutoryordersiftheyaresatisfied.

UnitedKingdom
IntheseminalcaseofAnisminicvForeignCompensationCommission,[6]LordReidisaccreditedwith
formulatingthedoctrineofultravires.However,ultravires,togetherwithunreasonableness,was
mentionedmuchearlierbyLordRussellinthewellknowncase,KrusevJohnson,[7]regarding
challengingbylawsandotherrules.Anisminicisbetterknownfornotdeprivingcourtsoftheir
jurisdictiontodeclareadecisionanullity,evenifastatuteexpresslypreventsthedecisionbeingsubject
tojudicialreview.FurthercasessuchasBromleyLBCvGreaterLondonCouncil[8]andCouncilofCivil
ServiceUnionsvMinisterfortheCivilService[9]havesoughttorefinethedoctrine.
InHammersmithandFulhamLondonBoroughCouncilvHazell[10]theHouseofLordsheldthatinterest
rateswapsenteredintobylocalauthorities(apopularmethodofcircumventingstatutoryrestrictionson
localauthoritiesborrowingmoneyatthattime)wereallultraviresandvoid,sparkingaraftofsatellite
litigation.

Seealso
Judicialactivism
JudicialReviewinEnglishLaw
MarkElliott(StCatharine'sCollege,Cambridgeproposesthemodifiedultraviresdoctrinefor
administrativelaw,placingitfirmlyinthecorrectconstitutionalsetting.(TheUltraViresDoctrine
inaConstitutionalSetting:StilltheCentralPrincipleofAdministrativeLaw[1999]Cambridge
LawJournalVol.58129)
Precedent

Notes
1.Sn124LegalcapacityandpowersofaCompany
(http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s124.html),CorporationsAct2001,
CommonwealthConsolidatedActs
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2.Sn125Constitutionmaylimitpowersandsetoutobjectives
(http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s125.html),CorporationsAct2001,
CommonlwealthConsolidatedActs
3.UnitedStatesv.Lopez,514U.S.549,567(https://supreme.justia.com/cases/federal/us/514/549/#567)(1995).
4.BoddingtonvBritishTransportPolice[1998]UKHL13
5.rcEsin,TheLiabilityofadministrationinEnglandandmainprinciplesappliedinjudicialreview,inOnar
Armagani,FakultelerMatbaasi,Istanbul1977,p.660
6.[1969]2WLR163
7.[1898]
8.[1983]AC768(seeLordWilberforce'sjudgment)
9.[1985]AC374(seeLordDiplock'sjudgment)
10.[1992]2AC1

References
RobertW.Hamilton.TheLawofCorporation4thEdition,1996WestGroup
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