The following are the effects of an act which is ULTRA VIRES:
1. VOID AB INITIO: The acts are null and void ab initio. The company is not bound by these acts, even the company cannot sue or sued upon the same.
2. INJUNCTION: in case a company is about to go for an act of ultravires, any member (even 1) can get an order of injunction from the court to restrain the company from doing such act.
3. PERSONAL LIABILITY: it becomes the personal liability of the directors if there is an ultravires act as it is the duty of the directors to ensure that the capital of the company is used for legitimate businesses only.
1. VOID AB INITIO: The acts are null and void ab initio. The company is not bound by these acts, even the company cannot sue or sued upon the same.
2. INJUNCTION: in case a company is about to go for an act of ultravires, any member (even 1) can get an order of injunction from the court to restrain the company from doing such act.
3. PERSONAL LIABILITY: it becomes the personal liability of the directors if there is an ultravires act as it is the duty of the directors to ensure that the capital of the company is used for legitimate businesses only.
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