Ultra vires
beyond the powers
Ultra vires is a Latin term meaning "beyond the powers." It refers to acts performed by a legal person or organ outside its statutory or constitutional powers.
Ultra vires is a Latin expression used in law to denote that an act or decision exceeds the powers of the acting organ or legal entity. This concept is significant in both company law and administrative law, where it defines the limits of those powers.
Its relevance lies in the potential nullity or voidability of the act. In practice, however, a third party acting in good faith may often enjoy protection against the consequences of an ultra vires act.
An example arises where a director of a company acts outside the statutory objects, which may give rise to liability or render the transaction invalid.
“The court held that the board's decision had been taken ultra vires and was therefore null and void.”
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