A Limited was into sale and purchase of iron rods. This was the main object of the company mentioned in the Memorandum of Association. The company entered into a contract with Mr. Johnny for some fina

Anaya · 5 Jun 2024

Doctrine of ultravaries:- Under this doctrine, if any company makes a contract which is - 1.out of the memorandum of association of company 2. Not allowed by companies act 2013 . 3. The attainment of which is not incidental to the main object is ultraveris Effects :- 1. It has no legal effect 2. Both company and person making contract are personally liable 3. No one can file suit on each other 4. Even shareholders can not rectify it 5. Member can obtain injunction order from court to stop the company from preceding such ultraveris contract 6. Company has the right hold the ultraveris property to protect it against damage by other party 7.company can take injunction order to stop the lender from expending money or if money is spent then recover it's money by being a creditor