What is ultra vires rule?
Ultra vires (Latin: “beyond the powers”) is a Latin phrase used in law to describe an act which requires legal authority but is done without it. Its opposite, an act done under proper authority, is intra vires (“within the powers”).
What is the rule for refund of application money?
(1) If the stated minimum amount has not been subscribed and the sum payable on application is not received within the period specified therein, then the application money shall be repaid within a period of fifteen days from the closure of the issue and if any such money is not so repaid within such period, the …
What is the validity period of shelf prospectus?
Who is liable for misstatement in prospectus?
Section 35 of the Companies Act provides for civil liability for misstatement in prospectus. Under Section 36, those liable to pay compensation include the directors of the company at the time of the issue of the prospectus and the promoters, among others, to every person who has sustained loss or damage.
What are the effects of ultra vires transactions?
Effects of an Ultra Vires Act An ultra vires act will be wholly void and it will not bind the company; neither the company nor the outsider can enforce the contract. 2. Any member of the company can bring injunction against the company to prevent it from doing any ultra vires act.
Which is the characteristic of a one person company?
Solved Example on One Person Company Has a distinct legal identity. Minimum paid-up capital of Rs 1 lakh is required. It must hold an annual general meeting within a year of incorporation. Sole member must name a nominee.
What is the difference between red herring prospectus and prospectus?
Red Herring Prospectus, RHP, is a prospectus, which does not have details of either price or number of shares being offered, or the amount of issue. This means that in case price is not disclosed, the number of shares and the upper and lower price bands are disclosed.
What is the meaning of ultra vires in law?
beyond the powers
What is shelf prospectus in simple words?
A shelf prospectus is a type of prospectus issued by companies making multiple issues of bonds for raising funds. It is compulsory for public limited companies to issue a prospectus before issuing securities. A shelf prospectus can be issued by any public limited company raising funds through multiple issues of bonds.
What is the validity period of Information Memorandum?
iii) The shelf prospectus shall indicate the period of its validity, which shall not exceed a period of 1 year. Validity period commencement shall be counted from the date of opening of 1st offer. iv) For all offers of securities after the 1st offer, no further prospectus is required to be issued.
Is affirming the consequent valid?
Modus ponens is a valid argument form in Western philosophy because the truth of the premises guarantees the truth of the conclusion; however, affirming the consequent is an invalid argument form because the truth of the premises does not guarantee the truth of the conclusion.
Can a company sign on behalf of a person in memorandum and articles?
(4) Where the subscriber to the memorandum is a body corporate, the memorandum and articles of association shall be signed by director, officer or employee of the body corporate duly authorized in this behalf by a resolution of the board of directors of the body corporate.
What are the types of ultra vires act?
Ultra-vires acts can be generally of four types:
- Acts which are ultra-vires to the Companies Act.
- Acts which are ultra-vires to the Memorandum of the company.
- Acts which are ultra-vires to the Articles of the company but intra-vires the company.
Is affirming the consequent sound?
This form of argument is called “affirming the consequent”. Basically, the argument states that, given a first thing, a second thing is true. It then AFFIRMS that the second thing is true, and concludes from this that the first thing must also be true. But, this sort of inference is mistaken.
What is the meaning of private placement?
A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.