CORPORATE CAPACITY AND THE ULTRA VIRES RULE UNDER NIGERIAN LAW

📄 Project Abstract

Any act of a company outside the Memorandum and Articles of Association of the company or the statute(s) creating the company are Ultra Vires. Traditionally, such acts are VOID and neither the company nor third parties derive any benefits from such transactions. Attempts to moderate the harsh consequences of the Ultra Vires Rule have failed to yield results that satisfy all the parties in corporate practice. The result is that, the Ultra Vires Rule is dreaded by many. As a follow up, the company, a potential instrument for investment and development, is equally dreaded by investors and/or creditors or third parties dealing with the company. This thesis investigates the Ultra Vires Rule and corporate capacity in theoretical and practical terms against the background of connected matters, with a view to arriving at recommendations for further reforms that will attain the best of results for Nigeria. This work strives to contribute immensely in ridding the dangerous propensities relative ...