doctrine of ultra vires

The doctrine of ultra vires is a legal principle that restricts a company or organization's actions to the powers and purposes defined in its constitutional documents, such as its articles of association. If the company acts beyond these specified powers—known as "ultra vires"—those actions are considered invalid and beyond its authority. This doctrine helps protect shareholders and third parties by ensuring the organization stays within its legal scope. Essentially, it emphasizes that a corporation can only do what it has explicitly been authorized to do and no more.