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('beyond the powers') is a
Latin phrase This is a list of Wikipedia articles of Latin phrases and their translation into English. To view all phrases on a single, lengthy document, see: List of Latin phrases (full). Lists of pages * List of Latin phrases (A) * List of Latin phrases ( ...
used in law to describe an act that requires legal authority but is done without it. Its opposite, an act done under proper authority, is ('within the powers'). Acts that are may equivalently be termed "valid", and those that are termed "invalid". Legal issues relating to can arise in a variety of contexts: *
Companies A company, abbreviated as co., is a legal entity representing an association of legal people, whether natural, juridical or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specifi ...
and other
legal person In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, lawsuit, sue and be sued, ownership, own property, and so on. The reason for the term "''le ...
s sometimes have limited legal capacity to act, and attempts to engage in activities beyond their legal capacities may be . Most countries have restricted the doctrine of in relation to companies by statute. * Similarly, statutory and governmental bodies may have limits upon the acts and activities which they legally engage in. *
Subordinate legislation Primary legislation and secondary legislation (the latter also called delegated legislation or subordinate legislation) are two forms of law, created respectively by the legislative and executive branches of governments in representative dem ...
which is purported passed without the proper legal authority may be invalid as beyond the powers of the authority which issued it.


Corporate law

In corporate law, describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, its
articles of incorporation Article often refers to: * Article (grammar), a grammatical element used to indicate definiteness or indefiniteness * Article (publishing), a piece of nonfictional prose that is an independent part of a publication Article(s) may also refer to: ...
, its by-laws, similar founding documents, or laws authorizing a corporation's formation. Acts attempted by a corporation that are beyond the scope of its charter are void or
voidable Voidable, in law, is a transaction or action that is valid but may be annulled by one of the parties to the transaction. Voidable is usually used in distinction to void ''ab initio'' (or void from the outset) and unenforceable. Definition The a ...
. # An transaction cannot be ratified by shareholders, even if they wish it to be ratified. # The doctrine of
estoppel Estoppel is a judicial device whereby a court may prevent or "estop" a person from making assertions or from going back on their word. The person barred from doing so is said to be "estopped". Estoppel may prevent someone from bringing a particul ...
usually precluded reliance on the defense of where the transaction was fully performed by one party. # '' A fortiori'', a transaction fully performed by both parties could not be attacked. # If the contract was fully executory, the defense of might be raised by either party. # If the contract was partially performed, and the performance was held insufficient to bring the doctrine of estoppel into play, a suit for quasi-contract for recovery of benefits conferred was available. # If an agent of the corporation committed a
tort A tort is a civil wrong, other than breach of contract, that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with cri ...
within the scope of their employment, the corporation could not defend on the ground the act was . Several modern developments relating to corporate formation have limited the probability that acts will occur. Except in the case of
non-profit corporation A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation ma ...
s (including
municipal corporations Municipal corporation is the legal term for a local governing body, including (but not necessarily limited to) cities, counties, towns, townships, charter townships, villages, and boroughs. The term can also be used to describe municipally ow ...
), this legal doctrine is obsolescent; within recent years, almost all business corporations have been chartered to allow them to transact any lawful business. The
Model Business Corporation Act The Model Business Corporation Act (MBCA) is a model act promulgated and periodically amended by the Corporate Laws Committee of the Business Law Section of the American Bar Association("Committee"). The MBCA has been adopted by 36 states and oth ...
of the United States states that: "The validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act." The doctrine still lives among non-profit corporations or state-created corporate bodies established for a specific public purpose, such as universities or charities.


United Kingdom

Historically all companies in the United Kingdom were subject to the doctrine of and any act which was outside of the objects specified in a company's
memorandum of association The memorandum of association of a company is an important corporate document in certain jurisdictions. It is often simply referred to as the memorandum. In the UK, it has to be filed with the Registrar of Companies during the process of incorp ...
would be and void.''
Ashbury Railway Carriage and Iron Co Ltd v Riche ''Ashbury Railway Carriage and Iron Co Ltd v Riche'' (1875) LR 7 HL 653 is a UK company law case, which concerned the objects clause of a company's memorandum of association. Its importance as case law has been diminished as a result of the Com ...
'' (1875) LR 7 HL 653
That result was commercially unpalatable. It led to companies being formed with extremely wide and generic objects clauses permitting a company to engage in all manner of commercial activities. The position was changed by statute by the
Companies Act 1985 The Companies Act 1985 (c. 6) is an Act of the Parliament of the United Kingdom of Great Britain and Northern Ireland, enacted in 1985, which enabled companies to be formed by registration, and set out the responsibilities of companies, their ...
, which essentially abolished the doctrine concerning commercial companies. The position is now regulated by the
Companies Act 2006 The Companies Act 2006 (c. 46) is an act of the Parliament of the United Kingdom which forms the primary source of UK company law. The act was brought into force in stages, with the final provision being commenced on 1 October 2009. It largel ...
, sections 31 and 39, which similarly significantly reduces the applicability of in corporate law. However, it can still apply to charities, and a shareholder may apply for an
injunction An injunction is an equitable remedy in the form of a special court order compelling a party to do or refrain from doing certain acts. It was developed by the English courts of equity but its origins go back to Roman law and the equitable rem ...
, in advance only, to prevent an act which is claimed to be .


United States

According to American laws, the concept of can still arise in the following kinds of activities in some states: # Charitable or political contributions # Guaranty of indebtedness of another # Loans to officers or directors # Pensions, bonuses, stock option plans, job severance payments, and other fringe benefits # The power to acquire shares of other corporations # The power to enter into a partnership


Other jurisdictions

In many jurisdictions, such as Australia, legislation provides that a corporation has all the powers of a natural person plus others; also, the validity of acts which are made is preserved.


Constitutional law

Under
constitutional law Constitutional law is a body of law which defines the role, powers, and structure of different entities within a state, namely, the executive, the parliament or legislature, and the judiciary; as well as the basic rights of citizens and, in ...
, particularly in
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
and the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, constitutions give federal and provincial or state governments various powers. To go outside those powers would be ; for example, although the court did not use the term in striking down a federal law in ''
United States v. Lopez ''United States v. Alfonso D. Lopez, Jr.'', 514 U.S. 549 (1995), also known as ''US v. Lopez'', was a landmark case of the United States Supreme Court that struck down the Gun-Free School Zones Act of 1990 (GFSZA) as it was outside of Congres ...
'' because it exceeded the constitutional authority of Congress, the Supreme Court still declared the law to be . According to Article 15.2 of the
Irish constitution The Constitution of Ireland (, ) is the fundamental law of Ireland. It asserts the national sovereignty of the Irish people. It guarantees certain fundamental rights, along with a popularly elected non-executive president, a bicameral parliam ...
, the
Oireachtas The Oireachtas ( ; ), sometimes referred to as Oireachtas Éireann, is the Bicameralism, bicameral parliament of Republic of Ireland, Ireland. The Oireachtas consists of the president of Ireland and the two houses of the Oireachtas (): a house ...
(parliament) is the sole lawmaking body in the
Republic of Ireland Ireland ( ), also known as the Republic of Ireland (), is a country in Northwestern Europe, north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland, with a population of about 5.4 million. ...
. In the case of '' CityView Press v AnCo'', however, the
Supreme Court of Ireland The Supreme Court of Ireland () is the highest judicial authority in Republic of Ireland, Ireland. It is a court of final appeal and exercises, in conjunction with the Court of Appeal (Ireland), Court of Appeal and the High Court (Ireland), Hig ...
held that the Oireachtas may delegate certain powers to subordinate bodies through primary legislation, so long as these delegated powers allow the delegatee only to further the principles and policies laid down by the Oireachtas in primary legislation and not craft new principles or policies themselves. Any piece of primary legislation that grants the power to make public policy to a body other than the Oireachtas is unconstitutional; however, as there is a presumption in
Irish constitutional law Irish commonly refers to: * Someone or something of, from, or related to: ** Ireland, an island situated off the north-western coast of continental Europe ***Éire, Irish language name for the island and the sovereign state *** Erse (disambiguati ...
that the Oireachtas acts within the confines of the constitution, any legislation passed by the Oireachtas must be interpreted in such a way as to be constitutionally valid where possible. Thus, in several cases where bodies other than the Oireachtas were found to have used powers granted to them by primary legislation to make public policy, the impugned primary legislation was read in such a way that it would not have the effect of allowing a subordinate body to make public policy. In these cases, the primary legislation was held to be constitutional. Still, the subordinate or secondary legislation, which amounted to creating public policy, was held to be the primary legislation and was struck down. In
UK constitutional law The United Kingdom constitutional law concerns the governance of the United Kingdom of Great Britain and Northern Ireland. With the oldest continuous political system on Earth, the British constitution is not contained in a single code but princ ...
, describes patents, ordinances, and the like enacted under the
prerogative powers The royal prerogative is a body of customary authority, privilege, and immunity recognised in common law (and sometimes in civil law jurisdictions possessing a monarchy) as belonging to the sovereign, and which have become widely vested in th ...
of the Crown that contradict statutes enacted by the
Crown-in-Parliament In the Westminster system used in many Commonwealth realms, the King-in-Parliament (Queen-in-Parliament during the reign of a queen) is a constitutional law concept that refers to the components of parliament – the sovereign (or vice- ...
. Almost unheard of in modern times, acts by the Crown or its servants were previously a major threat to the
rule of law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
. '' Boddington v British Transport Police'' is an example of an appeal heard by the House of Lords that contested that a by-law was beyond the powers conferred to it under section 67 of the Transport Act 1962.


Administrative law

In
administrative law Administrative law is a division of law governing the activities of government agency, executive branch agencies of government. Administrative law includes executive branch rulemaking (executive branch rules are generally referred to as "regul ...
, an act may be judicially reviewable for in a narrow or broad sense. Narrow applies if an administrator did not have the substantive power to make a decision or it was wrought with procedural defects. Broad applies if there is an abuse of power (e.g., Wednesbury unreasonableness or bad faith) or a failure to exercise an administrative discretion (e.g., acting at the behest of another or unlawfully applying a government policy) or application of discretionary powers in an irrational and wrong way. Either doctrine may entitle a claimant to various prerogative writs, equitable remedies or statutory orders if they are satisfied.


United Kingdom

In the seminal case of '' Anisminic v Foreign Compensation Commission'', Lord Reid is credited with formulating the doctrine of . However, , together with unreasonableness, was mentioned much earlier by Lord Russell in the well-known case, '' Kruse v Johnson'', regarding challenging by-laws and other rules. ''Anisminic'' is better known for not depriving courts of their jurisdiction to declare a decision a nullity, even if a statute expressly prevents it from being subject to judicial review. Further cases such as '' Bromley LBC v Greater London Council'' and ''
Council of Civil Service Unions v Minister for the Civil Service ''Council of Civil Service Unions v Minister for the Civil Service'' , or the GCHQ case, is a United Kingdom constitutional law and UK labour law case that held the royal prerogative was subject to judicial review. In 1984, by issuing a directive ...
'' have sought to refine the doctrine. In ''
Hammersmith and Fulham London Borough Council v Hazell ''Hazell v Hammersmith and Fulham LBC'' 9922 AC 1 is an English administrative law case, which declared that local authorities had no power to engage in interest rate swap agreements because they were beyond the council's borrowing powers, and ...
'', the
House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...
held that
interest rate swap In finance, an interest rate swap (IRS) is an interest rate derivative (IRD). It involves exchange of interest rates between two parties. In particular it is a "linear" IRD and one of the most liquid, benchmark products. It has associations with ...
s entered into by
local authorities Local government is a generic term for the lowest tiers of governance or public administration within a particular sovereign state. Local governments typically constitute a subdivision of a higher-level political or administrative unit, such a ...
(a popular method of circumventing statutory restrictions on local authorities borrowing money at that time) were all and void, sparking a raft of satellite litigation. Mark Elliott ( St Catharine's College, Cambridge) proposes a modified doctrine for administrative law, placing it firmly in the correct constitutional setting.Elliott, M., ''The Ultra Vires Doctrine in a Constitutional Setting: Still the Central Principle of Administrative Law''
999 999 or triple nine most often refers to: * 999 (emergency telephone number), a telephone number for the emergency services in several countries * 999 (number), an integer * AD 999, a year * 999 BC, a year Media Books * 999 (anthology), ''99 ...
Cambridge Law Journal ''The Cambridge Law Journal'' is a peer-reviewed academic law journal, and the principal academic publication of the Faculty of Law, University of Cambridge. It is published by Cambridge University Press, and is the longest established university ...
Vol. 58 129


See also

*
Judicial activism Judicial activism is a judicial philosophy holding that courts can and should go beyond the applicable law to consider broader societal implications of their decisions. It is sometimes used as an antonym of judicial restraint. The term usually ...
*
Judicial Review in English Law Judicial review is a part of UK constitutional law that enables people to challenge the exercise of power, usually by a public body. A person who contends that an exercise of power is unlawful may apply to the Administrative Court (a part of t ...
*
Precedent Precedent is a judicial decision that serves as an authority for courts when deciding subsequent identical or similar cases. Fundamental to common law legal systems, precedent operates under the principle of ''stare decisis'' ("to stand by thin ...


References

*Robert W. Hamilton.'' The Law of Corporation '' 4th Edition, 1996 West Group {{Law Administrative law Latin legal terminology