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 1 (a) What are the various alternatives that exist to settle a dispute besides going to court (b) What are their respective advantages and disadvantages QUESTIO

Your task is to examine and analyse the article by Shae McCrystal The Fair Work Act 2009 (Cth) and the Right to Strike. (2009) (December) Vol 23 Australian Journal of Labour Law

Classification of Companies: Section 389 of the Companies Act provides that "no company there association or may partnership consisting of more than twenty persons shall be fo

Raising Of Capital: In commercial parlance, the word 'capital' is generally used to denote the amount by which the assets of a business exceed its liabilities. Conversely, in

Purchase Of Own Shares: Another possible way in which a company's paid-up capital may leave the company other than in the ordinary course of the company's business would be if

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

Reports and balance sheets: The reports and balance sheets for the years ending June 30, 1925, and, June 30, 1926, were signed by two directors.  The reports annexed to these

Variation of class rights: It is only necessary to follow the variation of class rights procedure (and a dissenting minority can only apply to the court for cancellation)  if

Question: Consider the following formulation of Kant's Categorical Imperative: ‘Act only to that maxim by which you can at the same time will that it should become a universal