• 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 company...
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  • Doctrine of Ultra Vires-Effects and Exceptions
    ratified even if all the members wish to ratify it. This is called the doctrine of ultra vires, which has been firmly established in the case of Ashtray Railway Carriage and Iron Company Ltd v. Riche. Thus the expression ultra vires means an act beyond the powers. Here the expression ultra vires is used to...
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  • Ultra Vires (Development and Abolition)
    restricting the power of Parliamentary Corporation citing Eastern 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...
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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 Companies Act...
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  • Enron Case
    However,the doctrine was not paid due attention up to 1855.The rule of ultra vires was first laid down by the House of Lords in Eastern Counties Railway v. Hawkes (1855) 5HL331 where the Law Lords pointed “.it must therefore be now considered as well as settled doctrine that a company…. Cannot devote...
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  • Famous Law Cases
    left to the majority to decide what was for the benefit of the company. This rule has been applied in several cases later, vide MacDougall v. Gardiner [1875] 1 Ch 13. The procedural character of the rule in Foss v. Harbottle [1843] 2 Hare 461, was explained by Jenkins L. J. in the Edwards v. Halliwell [1950]...
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  • Law Essays
    stated 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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  • 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.
    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 unable to enforce...
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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 stock...
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  • Company Law
    mental distress. Thus in Hamlin v. Great Northern Railway Co. (1856) 1 H.& N 408, 411 Pollock C.B. said that damages cannot be given "for the disappointment of mind occasioned by the breach of contract." and in Hobbs v. London & South Western Railway Co. (1875) LR 10 QB 111, 122, Mellor J. said that "for...
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  • Doctrine of Ultra Vires in Public Law
    simple, the Courts have developed this 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...
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  • Memorandum Of Association
    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 Attorney General v Great Eastern Railway Co (1880) 5 App Cas 473, companies have the power to do things reasonably incidental to their objects...
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  • The Doctine of Ultra Vires in Irish Company Law
    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 of Association) Act 1890 [6] Companies Act 1963 [7] Bell...
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  • Ultra Vires Doctrine
    ratified even if all the members wish to ratify it. This is called the doctrine of ultra vires, which has been firmly established in the case of Ashtray Railway Carriage and Iron Company Ltd v. Riche. The expression “ultra vires” consists of two words: ‘ultra’ and ‘vires’. ‘Ultra’ means beyond and ‘Vires’...
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  • Business Law Ultra Vires
    resist it, and a court of equity will 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...
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  • Business Lae
    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 railway from Antwerp to Tournay. The company repudiated the contract as being ultra vires...
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  • Company Law
    memorandum with 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. ...
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  • Acca F4 Cases
    destroyed or lost in the post so that it never reaches the third party. offeror. Consideratio n: Price paid by Currie v each party to Misa [1875] the contract for the other party’s promise. Consideratio n need not be adequate (satisfactory) but must be valuable (beneficial). Performance of existing...
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  • Law in Malaysia
    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 ultra vires doctrine is essential to maintain the interest of...
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  • Company Law Essay - Cavendish University Law Lecturers Notes
    illustrated in the case of ASHBURY RAILWAY CARRIAGE CO. LTD VS. RICH (1875). A company which was not authorized by its memorandum of association to lend money or finance any activity made an agreement with the defendant to provide him with finance for the construction of a railway in Beligium, later on the...
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