• 1 Marks

BL – May 2016 – L1 – SA – Q5 – Company Law

Identify the scenario where a limited liability company's action is considered ultra vires.

The action of a limited liability company is considered ultra vires where it is NOT contained in
A. The capital clause
B. The subject clause
C. The authorization clause
D. The Code of corporate governance
E. The object or business clause

D. The Code of corporate governance

Explanation:
Ultra vires actions are those performed beyond the powers or authority granted by the company’s constitution, typically outlined in its object or business clause. The Code of corporate governance is not part of this structure.

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form