ultra vires

A purported exercise of power that a company does not possess, and therefore invalid [Latin: beyond the power]. The effect of the doctrine of ultra vires has been mitigated by the effect of the Companies Act 1989.

Usage: The exercise of the power to grant a mortgage over company property did not exist, and was therefore ultra vires the company.

Related Words: intra vires; objects; memorandum of association; Companies Acts; company; limited company; public company.