Staying within bounds: How the doctrine of ultra vires keeps board actions in check.

August 7, 2026

The Board cannot approve actions that violate the Companies Act, even if they seem beneficial to the company, because law overrides convenience. The doctrine of ultra vires serves as a constitutional check on corporate power, preventing directors from bypassing procedures and expanding their authority without accountability.

The article is written by Ms. Dhanakshi Bhanushali