Rules of Attribution

Lecture 6

Companies Capacity under CA 1993

s16 Capacity and powers

Permissible limitations on capacity, rights, powers or privileges

The capacity and/or powers of a company may be subject to a limitation imposed by the Act, another statute or the general law.

Statutory modification of the ultra vires doctrine: s 17(1)

Validity of actions - essentially does away with the ultra vires doctrine for the purposes of a third party lessor

The rule in s 17(1) applies in 2 situations:

limitation imposed by the CA, another statute or the general law or constitution of a company limits its capacity or powers.