Question
 In which of the following case it was held that if a
company pursues objects beyond the scope of the memorandum of association, the company's actions are ultra vires and void?Solution
Facts: Ashbury Railway Carriage and Iron Company Ltd’s memorandum stated that its objects were "to make and sell, or lend on hire, railway-carriages…" and that the activities beyond this needed a special resolution. But the company agreed to give Riche and his brother a loan to build a railway in Belgium. Later, the company repudiated the agreement. Riche sued, and the company pleaded that the action was ultra vires.
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