Ultra vires
Is the ultra vires rule still existing under the Company Acts 2016? No, it has lost its sanctity
The term Ultra Vires simply means beyond powers. It means that the company cannot engage in business or activity that is outside its mandate as provided in the memorandum of association.
New provision Companies Amendment Bill, 2016: Sec 4(1)(c).
provides that the MOA of a company shall state that the company may engage in any lawful act or activity or business, or any action or activity or business to pursue any specific object or objects, as per the law for the time being. For universal object companies, the doctrine of ultra vires becomes meaningless in force: in favour of shareholders and creditors
Reference
https://www.accaglobal.com, A. (2016). Malaysian Companies Act 2016: an overview | ACCA Qualification | Students | ACCA Global. Accaglobal.Com. https://www.accaglobal.com/an/en/student/exam-support-resources/fundamentals-exams-study-resources/f4/technical-articles/mys-comp-act.html
Kothari, V. (n.d.). Companies (Amendment) Bill, 2016. Retrieved April 30, 2020, from https://www.icsi.edu/media/portals/70/Presentation%20Companies%20Bill_2016%20-%20Vinod%20Kothari.pdf