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    Question

    (PYQ) Under the Companies Act, 2013, "Ultra Vires" acts

    of a company are:
    A Voidable at the option of directors Correct Answer Incorrect Answer
    B Valid if ratified by shareholders Correct Answer Incorrect Answer
    C Void and cannot be ratified even by unanimous consent Correct Answer Incorrect Answer
    D Valid if approved by the NCLT Correct Answer Incorrect Answer
    E Valid if they are for the benefit of the company Correct Answer Incorrect Answer

    Solution

    The Doctrine of Ultra Vires implies that any act done by a company which is beyond the powers conferred upon it by its Memorandum of Association is void and has no legal effect. It cannot be ratified by the shareholders.

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