A. DOCTRINE OF ULTRA VIRES UNDER COMPANIES ACT 1956
9
B. ABOLITION OF DOCTRINE/AMENDMENTS
14
4. STATEMENT OF PROBLEMS
17
5. OBJECTIVES OF THE STUDY
18
6. METHODOLOGY
19
A. PRIMARY SOURCES
19
B. ACADEMIC JOURNAL
20
C. SECONDARY SOURCES
20
7. STRUCTURE OF THE STUDY/CHAPTERISATION
21 – 25
vi
CHAPTER-2 HISTORICAL BACKGROUND OF THE DOCTRINE AND ITS APPLICABILITY 26-74
1. HISTORICAL BACKGROUND A. IN ENGLAND I. BEFORE 1855
II.
III.
26 26 26
a. CORPORATION OF ANCIENT TIMES
26
b. INCORPORATION OF ROYAL CHARTER
31
c. ENACTMENT AND REPEAL OF BUBBLE ACT 1720
31
d. PERIOD FROM 1825 TO 1844
32
e. TWO ACTS OF 1844
33
f. THE PERIOD OF QUAKERS
34
g. GLADESTONE ACT 1845
34
HISTORICAL BACKGROUND AFTER 1855
35
a. LIMITED LIABILITY ACT 1855
35
b. ENGLISH COMPANIES ACT 1862
36
c. HISTORICAL BACKGROUND IN SRI LANKA
38
d. THE REDCLIFF- MAUD COMMITTEE ON THE DOCTRINE
42
e. HISTORICAL BACKGROUND BASED ON DECIDED CASES
43
APPLICABILITY OF DOCTRINE TO CERTAIN AREAS, SUCH AS
49
a.
49
LIMITED LIABILITY PARTNERSHIPS
vii
b. TO LEGISLATIONS (BY EXPLAINING) I.
SUBSTANTIVE ULTRA VIRES
ii. PROCEDURAL ULTRA VIRES
50 52 58
IV.
APPLICABILITY OF THE DOCTRINE TO CERTAIN COUNTRIES
60
V.
COMPARISION BETWEEN INDIA AND UNITED KINGDOM
73
CHAPTER-3 CORPORATE PERSONALITY AND THE DOCTRINE 1. CONCEPT OF CORPORATE PERSONALITY
75-148 75
A. DEFINITION OF LEGAL PERSON
75
B. PURPOSE OF INCORPORATION
77
C. KIND OF CORPORATION
79
I. AGGREGATE
79
II. SOLE
82
D. CROWN AS CORPORATE SOLE
83
E. POSITION IN INDIA
84
F. CORPORATION WHETHER A CITIZEN
85
2. THEORIES OF CORPORATE PERSONALITY
88
A. FICTION THEORY
88
B. REALISTIC THEORY
90
C. CONCESSION THEORY
91
D. BRACKET THEORY
91
E. ORGANISM THEORY
92
F. OWNERSHIP THEORY
93
viii
G. PURPOSE THEORY
93
H. KELSON‟S THEORY
94
3. LIFTING THE CORPORATE VEIL
95
4. DOCTRINE OF CONSTRUCTIVE NOTICE OR KNOWLEDGE
97
A. ECOLVED BY COURTS IN U.K.
97
B. DOCTRINE OF CONSTRUCTIVE NOTICE SUBJECT TO FOLLOWING DOCTRINES 99 I. II.
DOCTRINE OF INDOOR MANAGEMENT AND
99
DOCTRINE OF HOLDING OUT
101
5. MAIN OBJECTS RULE OF CONSTRUCTION
102
6. PRELIMINARY CONTRACTS BEFORE INCORPORATION
104
A. AT COMMON LAW I. BY PROMOTERS
104 104
a. MEANING OF PROMOTER
104
b. POSITION OF PROMOTERS
105
II. BY COMPANIES
106
III. NOVATION
108
IV. ADOPTION OF CONTRACTS IN OBJECTS CLAUSE
108
B. POSITION IN INDIA
109
I. RECTIFICATION OF PRE-INCORPORATION CONTRACT
109
7. EVOLUTION OF COMPANY
110
A. UNDER ANCIENT ROME
110
B. UNDER COMMON LAW
111
C. UNDER INDIAN LAW
113
8. DEFINITION OF COMPANY
114
ix
9. CONSTITUTION OF COMPANY
116
10. INCORPORATION AND REGISTRATION OF COMPANY
119
A. INCORPORATION OF THE COMPANY
119
B. FORMATION OF COMPANY
121
C. PROCEDURE FOR REGISTRATION
122
D. CERTIFICATE OF INCORPORATION
123
E. CERTIFICATE AS CONCLUSIVE EVIDENCE
123
F. JUDICIAL REVIEW AGAINST REGISTRATION
125
11. MANAGEMENT OF CORPORATION
125
12. ARTICLES AND MEMORANDUM OF ASSOCIATION
126
A. ARTICLES OF ASSOCIATION
126
B. LEGAL STATUS OF ARTICLES OF ASSOCIATION
127
C. ARTICLES WHEN NECESSARY
128
D. CONTENTS OF ARTICLES
128
E. ARTICLES IN RELATION TO MEMORANDUM
129
F. LEGAL STATUS OF MEMORANDUM OF ASSOCIATION
131
13. RELATIONSHIP BETWEEN MEMORANDUM AND ARTICLES
131
14. BINDING FORCE OF MEMORANDUM AND ARTICLES
132
A. BINDING ON MEMBERS IN THEIR RELATION TO COMPANY
133
B. BINDING ON COMPANY IN ITS RELATION TO MEMBERS
133
C. BUT NOT BINDING IN RELATION TO OUT SIDERS
134
I. WHO IS AN OUT SIDER? D. HOW FAR BINDING BETWEEN MEMBERS 15. OBJECTS CLAUSE IN MEMORANDUM OF ASSOCIATION
134 135 137
x
A. THE OMNIBUS AND OTHER ALTERNATIVES
140
B. ALTERATION OF OBJECTS CLAUSE
141
C. FEW CASES IN RELATION TO ALTERATION OF OBJECTS CLAUSE
142
D. PROCEDURE FOR ALTERATION OF OBJECTS CLAUSE
146
E. REGISTRATION OF THE ALTERATION OF OBJECTS CLAUSE
148
CHAPTER-4 DEFINITION MEANING & NATURE OF DOCTRINE, ITS DISTINCTION FROM OTHERS & CORPORATE SOCIAL RESPONSIBILITIES 149-195 1. DEFINITION AND MEANING OF THE DOCTRINE A. DEFINITION
149 149
B. MEANING OF THE DOCTRINE BY VARIOUS AUTHORS TOTAL 13 IN NOS. C. OTHER MEANINGS OF THE DOCTRINE
150 157
I. PRIMARY MEANING
157
II. SECONDARY MEANING
158
III. DISTINCTION PRIMARY AND SECONDARY MEANING
160
IV. IMPROPER MEANING
161
V. MODERN MEANING
163
VI. MEANING OF THE DOCTRINE BY INDIAN COURTS
163
2. SCOPE, NATURE AND CONCEPT OF DOCTRINE A. SCOPE
164 164
xi
B. NATURE
170
I.
DOCTRINE A JUDGE MADE LAW
170
DOCTRINE OF ILLUSORY NATURE
173
SIMPLE AND PROCEDURAL NATURE OF DOCTRINE
175
II. III.
C. CONCEPT OF DOCTRINE 3. DISTINCTION BETWEEN ULTRA VIRES AND ILLEGALITY A. APPLICATION/DECISIONS 4. ILLEGALITY AND WANT OF JURISDICTION A. DEFINITION OF JURISDICTION
176 180 184 189 189
B. CONFUSION AMONG ULTRA VIRES AND WANT OF JURISDICTION 190 5. SOCIAL RESPONSIBILITIES OF CORPORATIONS AND THE DOCTRINE
191
CHAPTER-5 CONSEQUENCES OF ULTRA VIRES TRANSACTIONS AND ACTIONS 196-246 1. BOARD OF DIRECTORS A. CERTAIN EXCEPTIONS I.
196 197
DIRECTORS ACTING MALA-FIDE
197
II.
DIRECTORS WRONG DOERS
198
III.
INCOMPETENCY OF BOARD
198
IV.
DEADLOCK IN MANAGEMENT
198
POWERS OF INDIVIDUAL DIRECTORS
198
V.
2. POSITIONS OF DIRECTORS
199
xii
A. DIRECTORS AS TRUSTEE
199
B. DIRECTORS AS AGENTS
200
C. DIRECTORS AS ORGANS
201
D. POSITION OF DIRECTORS IN INDIA
202
E. POSITION IN UNITED KINGDOM
203
F. LIABILITY OF DIRECTOR UNDER ENGLISH LAW
204
3. CONSEQUENCIES OF ULTRA VIRES TRANSACTIONS
205
A. INJUNCTIONS
205
B. PERSON LIABILITY OF DIRECTORS
205
C. BREACH OF WARRANTY AND AUTHORITY
206
4. CONSEQUENCIES OF ULTRA VIRES BORROWINGS
207
A. NO LOAN
208
B. INJUNCTIONS
208
C. SUBROGATION
208
D. IDENTIFICATION AND TRACING
209
5. ULTRA VIRES ACQUIRED PROPERTY
210
6. ULTRA VIRES CONTRACTS
210
7. ULTRA VIRES TORTS
214
A. TORTS AND LIMITED LIABILITY
215
B. VICARIOUS LIABILITY IN TORTS
217
C. ULTRA VIRES TORTS AND CRIMES
222
D. DOCTRINE OF SUFFICIENT CLOSE CONNECTION IN TORTS
223
E. COMPANY LAW REVIEW ON TORT AND THE DOCTRINE
225
F. DOCTRINE OF IDENTIFICATION/ RULES OF ATTRIBUTION IN TORTS 226
xiii
G. MANSLAUGHTER AND CORPORATE KILLINGS 8. LIABILITY OF DIRECTORS AND THE DOCTRINE
227 230
A. TOWARDS COMPANY
230
B. TOWARDS THIRD PARTY
231
9. FEW PROVISIONS OF LAW HELD ULTRA VIRES
232
10. TRANSACTIONS OF COMPANIES HELD ULTRA VIRES
234
11. TRANSACTIONS OF COMPANIES HELD INTRA VIRES
237
12. CONSEQUENCES OF ULTRA VIRES ACTIONS
238
A. GENERALLY ULTRA VIRES ACTS AND TRANSACTIONS ARE VOID
238
B. ULTRA VIRES BORROWINGS- ITS EFFECT
239
C. WHEN ULTRA VIRES ACT OR TRANSACTION IS VOIDABLE
240
I. BORROWING ULTRA VIRES THE DIRECTORS OF A COMPANY II. VOID AND VOIDABLE ACT
240 241
III. VOID AND ILLEGAL CONTRACT
242
IV. RELIEF UNDER AN ULTRA VIRES ACTION
242
V. CONCEPT OF AWARDING PERSONAL DAMAGE
243
CHAPTER-6 EVASION, REFORMATION, ABOLITION/ EXCEPTIONS OF THE DOCTRINE 247-296 1. EVASION OF THE DOCTRINE
247
A. EVASION BY BUSINESS AND PRINCIPLES DEVELOPED BY COURTS TO PREVENT SUCH EVASION 250 B. OBJECT CLAUSE : A DEVICE OF EVASION
251
C. NEW TECHNIQUE OF EVASION
260
D. SUBSEQUENT EROSION OF THE DOCTRINE
262
xiv
2. REFORMATION OF DOCTRINE
263
A. REFORMATION OF 1972 AND 1985
266
B. REFORMATION OF THE YEAR 1989
268
I. II. III.
CASES OUTSIDE SECTION 35A
270
KNOWLEDGE TO AGENT/THIRD PARTY
271
AUTHORITY OF AGENT AT COMMON LAW
273
C. REFORMATION OF 1989 AND CHAIRTABLE COMPANIES
275
D. REFORM PROPOSED BY COMPANY LAW REVIEW
277
3. STATUS OF CONSTRUCTIVE NOTICE IN THE LIGHT OF FAMOUS DECIDED CASES 278 4. ABOLITION OF THE DOCTRINE
282
A. EXCEPTIONS TO THE DOCTRINE
285
I. UNDER ENGLISH LAW
285
a. BY EC ACT 1972
285
b. BY ENGLISH COMPANIES ACT 1948
286
c. UNDER DIFFERENT COURT RULINGS
286
d. UNDER COHEN COMMITTEE REPORT 1945
287
e. UNDER JENKIN COMMITTEE REPORT 1962
289
5. REPORT OF INDIAN COMMITTEES/COMMISSIONS LEADING TO ENACTMENT OF COMPANIES ACT 1956/ AMENDMENTS EFFECTING THE DOCTRINE OF ULTRA VIRES 291 I)
BHABHA COMMITTEE REPORT 1952
291
II)
VIVIAN BOSE COMMISSION REPORT (PUBLISHED IN 1962)
292
III)
DAPHTARY SASHTRY COMMITTEE REPORT 1957
295
xv
CHAPTER – 7 JUDICIAL RESPONSE / CONTROL OF THE DOCTRINE AND ITS STATUS IN OTHER COUNTRIES 297-339 1. DOCTRINE IN GENERAL
297
2. DOCTRINE AS MEANS OF JUDICIAL CONTROL
301
3. PLEADING OF THE DOCTRINE
302
A. BURDEN OF PROOF IN QUESTION OF ULTRA VIRES
304
B. LATEST TREND IN BURDEN OF PROOF
316
4. RECOMMENDATIONS OF REVIEW GROUP AND STATUS OF DOCTRINE IN OTHER COUNTRIES 318 A. RECOMMENDATIONS OF REVIEW GROUP
318
B. STATUS OF DOCTRINES IN OTHER COUNTRIES
321
I.
STATUS IN UNITED KINGDOM
321
AUSTRALIA
325
III.
NEW ZEALAND
328
IV.
CANADA
329
V.
BELGIUM
329
FRANCE
330
ITALY
330
NETHERLANDS
330
SWEDEN
331
SINGAPORE AND MALASIA
332
IRELAND
332
UNITED STATES
336
II.
VI. VII. VIII. IX. X. XI. XII.
5. AN ULTRA VIRES CLAIM IN UNITED STATES
337
xvi
CHAPTER-8 CONCLUSIONS AND SUGGESTIONS
340-368
1. CONCLUSION IN GENERAL A. FOCAL POINT OF CONCLUSION I. II.
DOCTRINE OF CONSTRUCTIVE NOTICE
340 343 343
FAMOUS CASES AS A PART OF CONCLUSION ON THE DOCTRINE 345
2. EVASION OF THE DOCTRINE A. POSITION IN ENGLAND
347 349
B. POSITION IN INDIA AND RECENT LEGISLATIVE DEVELOPMENT AFFECTING THE DOCTRINE 356 3. CONCLUSION OF THE CONSEQUENCIES OF ULTRA VIRES TRANSACTIONS
362
4. CONCLUSION WITH SPECIAL EMPHASIS ON LACK OF CORPORATE SOCIAL RESPONSIBILITIES 364 5. GENERAL SUGGESTIONS
365
6. FOLLOWING AMENDMENTS ARE SUGGESTED IN THE COMPANIES ACT 1956. 367
contents - Shodhganga
v
CONTENTS CHAPTER 1 INTRODUCTION
`
1. FUNDAMENTALS OF RESEARCH
1- 25 1
A. MEANING AND DEFINITION OF RESEARCH
1
B. OBJECTIVES OF RESEARCH
3
2...