Corporate Purpose and Powers

Question 1

What is an Ultra Vires Act?

Answer 1

An act that is not within the express or implied powers of the corporation

Question 2

Injunctive uses of ultra vires

Answer 2

1. By shareholder against corp to enjoin the unauthorized act or transfer of property
2. In action by corp against officers or directors for exceeding their authority
3. In a proceeding by the state to dissolve the corp or to enjoin it from transacting unauthorized business