• Ashbury
    Ashbury Railway Carriage and Iron Co Ltd v Riche [(1875) LR 7 HL 653] Aradhya Choubey 2011/B.A. LL.B./014 ------------------------------------------------- facts The Ashbury Railway Carriage and Iron is a Company incorporated under Companies Act, 1862 and its objects clause stated that the...
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  • Ultra Vires (Development and Abolition)
    Counties Railways Company v Hawkes 1859. Later on, in the first case of ultra vires of a Registered Corporation (Riche v Ashbury Railway Carriage Company 1875), Lord Selbourne confirmed the application of "ultra vires" to Registered Corporations, stating: Contracts for objects and purposes foreign to, or...
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  • Doctrine of Ultra Vires-Effects and Exceptions
    developed to protect the investors and creditors of the company. The doctrine of ultra vires could not be established firmly until 1875 when the Directors, &C., of the Ashbury Railway Carriage and Iron Company (Limited) v Hector Riche, (1874-75) L.R. 7 H.L. 653 was decided by the House of Lords. A...
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  • Famous Law Cases
    Railway Carriage and Iron Co. Ltd v Riche | Court | House of Lords | Citation(s) | (1875) LR 7 HL 653 | Case history | Prior action(s) | (1875) LR 9 Ex 224 | Ashbury Railway Carriage and Iron Co Ltd v Riche-Doctrine of ultravires(1875) LR 7 HL 653 is a UK company law case, which...
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  • Enron Case
    company…. Cannot devote any part of its funds to objects unauthorized by the terms of its incorporation, however desirable such an application may appear to be”.The doctrine of ultra vires could not be established firmly until 1875 when the Ashbury Railway Carriage and Iron Company Ltd v. Riche, (1875...
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  • Railway
    The Directors, &C., of the Ashbury Railway Carriage and Iron Company (Limited) v. Hector Riche (1874-75) L.R. 7 H.L. 653 Divisional Court HL (UK-Irl) The Lord Chancellor (Lord Cairns), Lord Chelmsford, Lord Hatherley, Lord O'Hagan and Lord Selborne. 1875 June 1, 4, 7...
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  • With Reference to Company Legislation and Case Law, Critically Assess the View That in the 21st Century the Cost of Corporate Limited Liability Is Greater Openness, Transparency, Accountability and Regulation.
    object set in object clause is said to be ultra vires. At common law, an ultra vires transaction is void and unenforceable as was seen in Ashbury Railway Carriage & Iron Co. v. Riche (1875). The use of the ultra vires rule often caused the hardship for innocent 3rd parties acting bona fide, who were...
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  • Company Law
    regulation then, the company has ultra vires. Case: ASHBURY RAILWAY CARRIAGE AND IRON CO. LTD V RICHE 1875 The company had an object clause which stated that its objects were to make and sell or lend or hire railway carriages and wagons and all kinds of railways plant, fittings, machinery and rolling...
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  • The Doctine of Ultra Vires in Irish Company Law
    Registration Office Report 2006, page 7 [2] “Company Law for the 21st Century”, Report on General Scheme of Companies Consolidation and Reform Bill, Companies Law Reform Group,2007. [3] Ashbury Railway Carriage and Iron Co. v. Riche (1875) L.R. 7 H.L. 653 [4] Companies Act 1963 [5] Companies(Memorandum...
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  • Company Law
    that the bank loan was ultra vires and void. HELD: The loan was ultra vires as the power to borrow money must be subordinate to the main objects of the business. As a result the loan was irrecoverable. Ashbury Railway & Iron Co v Riche 1875 The objects were to make and sell railway...
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  • Memorandum Of Association
    case concerning the objects clause of a company, and the problems involving the ultra vires doctrine. It held that a clause stipulating the courts should not read long lists of objects as subordinate to one another was valid. Ashbury Railway Carriage & Iron Co Ltd v Riche (1875) LR 7 HL 653...
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  • Ultra Vires Doctrine
    directors to know within what lines of business they are authorized to act. Establishment of the Doctrine The doctrine of ultra vires could not be established firmly until 1875 when the case of the 2Ashbury Railway Carriage and Iron Company (Limited) v Hector Riche, (1874-75) L.R. 7 H.L. 653 was...
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  • Business Law Ultra Vires
    interpose on his behalf The Ashbury Railway Carriage Company Case The decision in Simpson v. Westminster Palace Company was given before the Companies Act of 1862 could be tested. It was not until 1875 that the effect of that particular piece of legislation was finally evaluated.28 In the...
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  • Business Lae
    transaction which is outside its objects clause is ultra vires and consequently void. The doctrine of ultra vires in company law may be traced to the lading on Ashbury Railway Carriage and Iron Co Ltd v. Riche(1875) LR 7 HL 653. “Riche had obtained a concession from the Belgian Government to make a...
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  • Doctrine of Ultra Vires in Public Law
    principle by extending and refining it over a long period of time. In the case of Ashbury Railway Carriage and Iron Co. Ltd. V. Hector Riche (1875) of the Law Reports 653, the House of Lords considered the validity of a contract entered into by the directors of a company, which did not come within the...
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  • Law Essays
    in the object clause, even if every member of the company assented to it: Ashbury Railway Carriage Co v. Riche (1875). In Ashbury the House of Lords was unwilling to say that buying a concession to operate a railway was reasonably incidental to the main purpose of the company. ▪ Powers not...
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  • Company Law
    respect to the objects of the company. If company’s activities inconsistent with the object, - Refer to Ashbury Railway Carriage & Iron Ltd v Riche (1875) Common law position - such ultra activities are ultra vires hence void and unenforceable. It cannot be ratified. Alteration...
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  • Corporate Law and Governance
    enter into any contract with third party, of which the purpose goes against its object. Otherwise, such act by the company is deemed to be an ultra vires act. Hence, the contract cannot be ratified by the company and considered as void contract which is shown in case Ashbury Railway v Riche. The...
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  • Acca F4 Cases
    Ltd. [1995] Any contract Ashbury not Railways authorized Carriage v by the Riche objects [1875] clause of a company is termed ultra virus. Failure of German substratum date coffee may result in Co. [1882] winding up of company. The objects clause of the The contract was ultra virus and...
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  • Law in Malaysia
    the ultra vires doctrine under section 20 (1). Conversely, the contract is valid as it is ‘intra-vires’, if the contract is inside the scope of the Memorandum of Association. In case Ashbury Railway Carriage & Iron Co v Riche [1875] LR 7 HL 653, the decision of the House of Lords held that the...
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