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GCE Commerce 1989 Question 72

Question 72

Business Units

Any powers exercised by a company in pursuance of objectives not authorized by the Memorandum of Association is regarded as

  1. A.a trespass
  2. B.a nuisance
  3. C.ultra vires
  4. D.uberrima fidei
  5. E.caveat emptor
Show the answer and explanation

Answer: C (ultra vires)

Explanation

Ultra vires means 'beyond the powers' given in the objects clause of the memorandum.