('beyond the powers') is a
Latin phrase used in law to describe an act which requires legal authority but is done without it. Its opposite, an act done under proper authority, is ('within the powers'). Acts that are may equivalently be termed "valid", and those that are termed "invalid".
Legal issues relating to can arise in a variety of contexts:
*
Companies
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared ...
and other
legal persons sometimes have limited
legal capacity to act, and attempts to engage in activities beyond their legal capacities may be .
Most countries have restricted the doctrine of in relation to companies by statute.
* Similarly, statutory and governmental bodies may have limits upon the acts and activities which they legally engage in.
*
Subordinate legislation which is purported passed without the proper legal authority may be invalid as beyond the powers of the authority which issued it.
Corporate law
In corporate law, describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's
objects clause, its
articles of incorporation, its
by-laws, similar founding documents, or laws authorizing a corporation's formation. Acts attempted by a corporation that are beyond the scope of its charter are
void or
voidable.
# An transaction cannot be ratified by shareholders, even if they wish it to be ratified.
# The doctrine of
estoppel usually precluded reliance on the defense of where the transaction was fully performed by one party.
# ''
A fortiori'', a transaction which was fully performed by both parties could not be attacked.
# If the contract was fully executory, the defense of might be raised by either party.
# If the contract was partially performed, and the performance was held to be insufficient to bring the doctrine of estoppel into play, a suit for
quasi-contract
A quasi-contract (or implied-in-law contract or constructive contract) is a fictional contract recognised by a court. The notion of a quasi-contract can be traced to Roman law and is still a concept used in some modern legal systems. Quasi Contra ...
for recovery of benefits conferred was available.
# If an
agent of the corporation committed a
tort
A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with criminal wrongs that are punishabl ...
within the scope of his or her employment, the corporation could not defend on the ground the act was .
Several modern developments relating to corporate formation have limited the probability that acts will occur. Except in the case of
non-profit corporation
A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation may ...
s (including
municipal corporations), this legal doctrine is
obsolescent; within recent years, almost all business corporations are chartered to allow them to transact any lawful business. The
Model Business Corporation Act of the United States states that: "The validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act." The doctrine still has some life among non-profit corporations or state-created corporate bodies established for a specific public purpose, such as universities or charities.
United Kingdom
Historically all companies in the United Kingdom were subject to the doctrine of and any act which was outside of the objects specified in a company's
memorandum of association would be and
void.
['' Ashbury Railway Carriage and Iron Co Ltd v Riche'' (1875) LR 7 HL 653] That result was commercially unpalatable, and led to companies being formed with extremely wide and generic objects clauses permitting a company to engage in all manner of commercial activities.
The position was changed by statute by the
Companies Act 1985 which largely abolished the doctrine in relation to commercial companies. The position is now regulated by the
Companies Act 2006, sections 31 and 39, which similarly greatly reduces the applicability of in corporate law, although it can still apply in relation to charities and a shareholder may apply for an
injunction, in advance only, to prevent an act which is claimed to be .
In many jurisdictions, such as Australia, legislation provides that a corporation has all the powers of a natural person plus others; also, the validity of acts which are made is preserved.
United States
According to American laws, the concept of can still arise in the following kinds of activities in some states:
# Charitable or political contributions
# Guaranty of indebtedness of another
# Loans to officers or directors
# Pensions, bonuses, stock option plans, job severance payments, and other fringe benefits
# The power to acquire shares of other corporations
# The power to enter into a partnership
Constitutional law
Under
constitutional law
Constitutional law is a body of law which defines the role, powers, and structure of different entities within a state, namely, the executive, the parliament or legislature, and the judiciary; as well as the basic rights of citizens and, in fed ...
, particularly in
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tota ...
and the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
, constitutions give federal and provincial or state governments various powers. To go outside those powers would be ; for example, although the court did not use the term in striking down a federal law in ''
United States v. Lopez'' on the grounds that it exceeded the constitutional authority of Congress, the Supreme Court still declared the law to be .
According to Article 15.2 of the
Irish constitution
The Constitution of Ireland ( ga, Bunreacht na hÉireann, ) is the fundamental law of Ireland. It asserts the national sovereignty of the Irish people. The constitution, based on a system of representative democracy, is broadly within the traditi ...
, the
Oireachtas
The Oireachtas (, ), sometimes referred to as Oireachtas Éireann, is the bicameral parliament of Ireland. The Oireachtas consists of:
*The President of Ireland
*The two houses of the Oireachtas ( ga, Tithe an Oireachtais):
**Dáil Éireann ...
(parliament) is the sole lawmaking body in the
Republic of Ireland
Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland. The capital and largest city is Dublin, on the eastern ...
. In the case of ''
CityView Press v AnCo'', however, the
Supreme Court of Ireland held that the Oireachtas may delegate certain powers to subordinate bodies through primary legislation, so long as these delegated powers allow the delegatee only to further the principles and policies laid down by the Oireachtas in primary legislation and not craft new principles or policies themselves. Any piece of primary legislation that grants the power to make public policy to a body other than the Oireachtas is unconstitutional; however, as there is a presumption in
Irish constitutional law
Irish may refer to:
Common meanings
* Someone or something of, from, or related to:
** Ireland, an island situated off the north-western coast of continental Europe
***Éire, Irish language name for the isle
** Northern Ireland, a constituent unit ...
that the Oireachtas acts within the confines of the constitution, any legislation passed by the Oireachtas must be interpreted in such a way as to be constitutionally valid where possible.
Thus, in a number of cases where bodies other than the Oireachtas were found to have used powers granted to them by primary legislation to make public policy, the impugned primary legislation was read in such a way that it would not have the effect of allowing a subordinate body to make public policy. In these cases, the primary legislation was held to be constitutional, but the subordinate or secondary legislation, which amounted to creation of public policy, was held to be the primary legislation and was struck down.
In
UK constitutional law, describes patents, ordinances and the like enacted under the
prerogative powers of the Crown that contradict statutes enacted by the
Crown-in-Parliament
The King-in-Parliament (or, during the reign of a female monarch, Queen-in-Parliament), sometimes referred neutrally as the Crown-in-Parliament, is a technical term of constitutional law in the Commonwealth realms that refers to the Crown in it ...
. Almost unheard of in modern times, acts by the Crown or its servants were previously a major threat to the
rule of law.
''
Boddington v British Transport Police'' is an example of an appeal heard by House of Lords that contested that a bylaw was beyond the powers conferred to it under section 67 of the
Transport Act 1962.
Administrative law
In
administrative law
Administrative law is the division of law that governs the activities of executive branch agencies of government. Administrative law concerns executive branch rule making (executive branch rules are generally referred to as " regulations"), ...
, an act may be
judicially reviewable for in a narrow or broad sense. Narrow applies if an administrator did not have the substantive power to make a decision or it was wrought with procedural defects. Broad applies if there is an abuse of power (e.g.,
Wednesbury unreasonableness or bad faith) or a failure to exercise an administrative discretion (e.g., acting at the behest of another or unlawfully applying a government policy) or application of discretionary powers in irrational and wrong way. Either doctrine may entitle a claimant to various prerogative writs, equitable remedies or statutory orders if they are satisfied.
United Kingdom
In the seminal case of ''
Anisminic v Foreign Compensation Commission'', Lord Reid is accredited with formulating the doctrine of . However, , together with unreasonableness, was mentioned much earlier by Lord Russell in the well-known case, ''
Kruse v Johnson
''Kruse v Johnson'' 8982 QB 91 is a UK administrative law case, concerning the judicial review of decisions by public bodies. It is notable as Lord Russell CJ established the principle that if a measure were to indirectly discriminate between ...
'', regarding challenging by-laws and other rules. ''Anisminic'' is better known for not depriving courts of their jurisdiction to declare a decision a nullity, even if a statute expressly prevents the decision being subject to judicial review. Further cases such as ''
Bromley LBC v Greater London Council'' and ''
Council of Civil Service Unions v Minister for the Civil Service'' have sought to refine the doctrine.
In ''
Hammersmith and Fulham London Borough Council v Hazell''
[''Hammersmith and Fulham London Borough Council v Hazell'' 9922 AC 1] the
House of Lords
The House of Lords, also known as the House of Peers, is the upper house of the Parliament of the United Kingdom. Membership is by appointment, heredity or official function. Like the House of Commons, it meets in the Palace of Westminster ...
held that
interest rate swaps entered into by
local authorities
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
(a popular method of circumventing statutory restrictions on local authorities borrowing money at that time) were all and
void, sparking a
raft of satellite litigation.
See also
*
Judicial activism
Judicial activism is a judicial philosophy holding that the courts can and should go beyond the applicable law to consider broader societal implications of its decisions. It is sometimes used as an antonym of judicial restraint. The term usually ...
*
Judicial Review in English Law
Judicial review is a part of UK constitutional law that enables people to challenge the exercise of power, usually by a public body. A person who contends that an exercise of power is unlawful may apply to the Administrative Court (a part of th ...
*Mark Elliott (
St Catharine's College, Cambridge proposes the modified doctrine for administrative law, placing it firmly in the correct constitutional setting. (''The Ultra Vires Doctrine in a Constitutional Setting: Still the Central Principle of Administrative Law''
999Cambridge Law Journal Vol. 58 129)
*
Precedent
A precedent is a principle or rule established in a previous legal case that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts. Common-law legal systems place great v ...
Notes
*Robert W. Hamilton.'' The Law of Corporation '' 4th Edition, 1996 West Group
{{Law
Administrative law
Latin legal terminology