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Ultra vires


Ultra vires, as used in corporate law, is not synonymous with an act being null and void. It is a Latin phrase (“beyond the powers”) describing an act which requires legal authority but which is done without it (Wikipedia). The Revised Corporation Code (Sec. 44) describes it as an act performed by a corporation “other than those conferred by this Code or by its articles of incorporation and except as necessary or incidental to the exercise of the powers conferred.” 
 There are two types of ultra vires acts: the first are those which are contrary to law and are, therefore, void; and the second are those which are performed outside the scope of the powers granted under the articles of incorporation (Herbosa&Recalde, the Revised Corporation Code, p.201). An ultra vires act is not necessarily null and void except when it is done for an illegal or unlawful purpose, such as when the corporation authorizes the smuggling of contraband goods. ....

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