Ultra Vires Act Definition | Becker

Accounting Dictionary

Ultra Vires Act

An ultra vires act is an unauthorized act. Under the RMBCA, a corporation may include a clause in its articles stating the business purpose for which the corporation was formed. A number of states require a purpose clause. If a corporation undertakes business activities outside the scope of the clause (or outside the business permitted by statute), it is said to be acting "ultra vires" and may be challenged by adversely affected parties under certain circumstances.

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