Explain the Doctrine of Ultra- vires .(UV) Introduction      The object clause of the Memorandum of the company contains the object for which the company is formed.  An act of the company must not be beyond the objects clause, otherwise it will be ultra vires  and, therefore, void and cannot be ratified even if all the members wish to ratify it. This is called the doctrine of ultra  vires . Click here      The word ‘ultra’ means beyond and ‘ vires ’ means powers. Thus the expression ultra  vires  means an act beyond the powers.  Here the expression ultra  vires  is used to indicate an act of the company which is beyond the powers conferred on the company by the objects clause of its memorandum.      The application of the doctrine of ultra- vires  was first demonstrated by the House of Lords in  Ashbury Railway Carri...

Explain the Advantages and Disadvantages of Incorporation of a Company. Introduction      A company, in common parlance, means a group of persons associated together for the attainment of a common end, social or economic. It has “no strictly technical or legal meaning.”      According to sec. 3 (1) (ii) of the Companies Act, 1956 a company means a company formed and registered under the Companies Act, 1956 or any of the preceding Acts. Thus, a Company comes into existence only by registration under the Act, which can be termed as incorporation. A company is a separate legal entity which is formed when the registrar of companies issues a certificate of incorporation. In order to obtain a certificate of incorporation one or more persons needs to have supplied the registrar of companies with a memorandum of association and all other necessary documents like:  Memorandum of association,  Articles of association,  Applicati...

Answers to the Introduction to Company Law INTRODUCTION The concept of ‘Company’ or ‘Corporation’ in business is not new, but was dealt with, in 4th century BC itself during ‘Arthashastra’ days. Its’ shape got revamped over a period of time according to the needs of business dynamics.  Company form of business has certain distinct advantages over other forms of businesses like Sole Proprietorship/Partnership etc. It includes features such as Limited Liability, Perpetual Succession etc. After reading this lesson, you would be able to understand the historical development in the evolution of corporate law in India and England, emerging regulatory aspects including Companies Act, 2013, besides dealing with basic characteristics of the company and how it differs from other forms of businesses. Arrest under Indian law        Meaning of a Company The word ‘company’ is derived from the Latin word (Com=with or together; panis =bread), an...