Ultra Vires means “beyond the power of” in Latin. The Ultra Vires Doctrine is a policy in which the memorandum of Association must state the objects of the company. The purpose of the objects clause is to define and limit the activities which the company is permitted to undertake.
The effects of Section 20(1) are that the company is estopped from claiming a contract ultra vires when the ultra vires contract is fully performed. Thus, the creditors are protected by the said section.
Company may by special resultions alter the provision of its memorandum with respect to the objects of the company in order to authorize acts which otherwise would be ultra vires. [ection 28(1) Companies Act 1965]
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