Companies Ultra Wire Acts
An Act for companies was passed in 1862, according to which restrictions on the change of objects were implemented and principles of ‘outside rights’ began only due to these restrictions. The violation of rules related to the external and internal issues of the company is called only as unauthorized Act. These are divided into three parts –
a. Ultra Wires Companies Act.
b. Memorandum of Ultra Wires Association.
c. Articles of the Ultra Wires Association.
(a) Ultra Wires Companies Act- If a company acts outside the rights provided by the Company Act, these are called Ultra Wires.
(b) Ultra-wares in its memoirs of the association-details of the Company’s goods should be written as easy and expressly. The object section of the memorandum defines the radius of the company’s acts. This is two objects according to God Parker’s opinion. First, to inform external parties what are the power limits of the company and in the transaction these borders are being placed with the company and the second thing is to be well explained to investors what is being used for their money.
(C) Ultra-virus of Association- If the power of their right given in the articles of the Union is carried out by directors which resulted in the form of ultra-wire, such acts shall be considered as ultra-wire for directors and if the company as desires then these acts may be confirmed by the opinion of a general meeting. But, if an act made by the company goes beyond the power-limits described in the object section of the company’s memorandum, that Act will be ultra-wire for the company and if even after that all members of the company collectively confirm that task, then that Act may not be legally justified.
We come to the conclusion of Ultravers’ theory that the company can only do things that only-
1. Required for the fulfillment of the main items mentioned in your memo.
2. The company can also do things that are casual and consequential or suitable for its object.
3. The Company may also perform tasks during its business besides which are authorized by the Company Act.
Other than the above work all the functions carried out by the company shall be considered illegal and unlawful and effective zero and zero as per the principle of over-wire, but the following exceptions are to this principle –
1. Also in case of company property earned by its ultra wire investors, the company’s rights on it will be safe and secure.
2. If the work done by the directors of the company is beyond the power of their rights, then the power of the company does not beyond the limit, then that work shall be legal after approval by the shareholders of the company and not considered ineffective under the principle of Ultra Wire.
3. The principle of ultra-wire, casual or consequential results due to the authorized functions of the Company shall not be considered illegal when implementing the principle of ultra-wire, casual or consequential results until these companies are clearly banned. Act.
4. If any work done by the company is within its power limit, but it is done irregularly, it can be made legal from the acceptance of all shareholders of the company. This acceptance isn’t necessary for this.
All shareholders must be obtained together in one place.
5. If a company’s work is ultra-wire due to its jurisdiction described in its articles, the company may provide validity to make expected changes to its articles.
