Implied powers, Business Law and Ethics

Implied Powers:

                                    The statement of Lord Cairns in 1875 in Ashbury Rail Co Ltd v Riche (22) to the effect that a contract beyond the objects of the company "in the memorandum of association" is "beyond the powers" of the company gives the impression that a company has no legal power to do anything which is not written in the memorandum of association. That would be a startling proposition because, in practice, companies have to do so many things in the course of their business that if all those things were to be written down in the memorandum of association, the memorandum would be such a gigantic document that nobody would print or read. It was therefore a welcome clarification of the legal position when, in 1880, Lord Selborne, L C, stated in Attorney-General v Great Eastern Railway Co that the doctrine of ultra vires, as explained in the Ashbury case, "ought to be reasonably, and not unreasonably, understood and applied". His Lordship then explained that it is not necessary for a company to write down in its memorandum everything that it would or could do in the course of its business because whatever may fairly be regarded as incidental to, or consequential upon, those things which have been stated in the memorandum ought not, and would not, be held by the courts to be ultra vires. The courts would regard such things as impliedly within the company's powers unless they are "expressly prohibited" by the memorandum.

Posted Date: 1/12/2013 2:31:31 AM | Location : United States







Related Discussions:- Implied powers, Assignment Help, Ask Question on Implied powers, Get Answer, Expert's Help, Implied powers Discussions

Write discussion on Implied powers
Your posts are moderated
Related Questions
QUESTION (a) The new Guideline on Corporate Governance relates to the processes and structures that should be put in place in order to direct and manage the business and affair

Q. Liability based definition of phoenix activity? The definition used by Treasury, and used as a working definition for this project, focuses on the intent with which phoenix

Purpose: To enable course registrants to apply their knowledge of ethical principles, skills in ethical analysis, and use of introspection to analyze an actual case that contains

Business Names:                             If a company has a place of business in Kenya and carries on business under a business name which does not consist of its corporate

United Nations Convention on the Law of the Sea The rights over the sea were extended by the United Nations Convention on the Law of the Sea (UNCLOS) adopted in 1982. The UNCLO

Question 1: Write brief notes on the following contractual terms:- (a) How an offer differ from an invitation to treat. (b) The principles governing goods wh

Liability of Maker of a Promissory Conversely S.89 provides such with the maker of a promissory notice through making it: like (a) Engages such he will pay it according to

Counter - offer and Death - Termination of an Offer Counter - offer However a counter - offer is constituted through the offeree's qualified acceptance that in itself g

Explain about the general assembly of United Nations. The General Assembly: The General Assembly is the major deliberative organ of the United Nations. This is composed o

Article 5 - State Responsibilty Article 5. Acts of persons authorized by a state to act on their behalf then the state is responsible for the actions of that person. For exampl