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
a) Under these facts, what claim could Purchaser assert if she begin a lawsuit?  State the name of the claim only.   b)   What would Purchaser argue is her basis for such cla

State the third approach to antitrust agency A third approach to antitrust agency interaction is the bilateral cooperation and coordination theory. This model for how an agency

Civil Liabilities: LIABILITY FOR FAILURE TO STATE ANY MATTER OR REPORT At Common Law, a contract of allotment is not a contract Uberrimae Fidei. The company is therefore no

Question 1 Describe the term banking. What are the acceptable businesses for a banking company as per BR Act 1949 Question 2 When is a negotiable apparatus considered as dish

Hire-Purchase and Sale The hire-purchase transaction is such not a sale since, according to the definition like: (i)There is no seller or buyer. Such like the parties are the

Q. Show the Cross agency actions ? As already described, the ASIC, ATO and FWO all have responsibilities in investigating and monitoring elements of phoenix activity. This mean

hello.. iahve one business law assignment can you please give me quote?

Deferred Debts - Disclaimer of assets: Deferred Debts: A debt owed to a member as member, i.e. an unpaid dividend, is a deferred debt paid only when ordinary debts have b

QUESTION 1 (1) What do you understand by business ethics? (2) How can an ethical climate be improved in an organization? QUESTION 2 Explain the importance of stakeho

Judicial and Legislative Function of Chief Justice Judicial Function However a judge of the High Court and the court of Appeal he participates in the adjudicatory proce