Applicability of the Doctrine of Ultra Vires on Private Commercial Companies in Ethiopia: Its Legal Significance
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Date
2020-05
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AAU
Abstract
The principle of limited liability introduced into private companies makes it imperative to define the powers and capacity of such companies, authority of their agents and the consequences and effects of ultra vires acts. The doctrine of ultra vires applicable to private companies was the invention of the judiciary which, subsequently, has been introduced in the commercial regime of both civil and common law jurisdictions, but not in every country. In this thesis, it is argued that the commercial regime of Ethiopia has given recognition to the applicability of the doctrine of ultra vires to private commercial companies, though not comprehensively. It is incomprehensive because the legal consequences and effects of ultra vires acts of private commercial companies are indeterminate. Moreover, the commercial regime of Ethiopia is impugned for it lacks clarity and specificity in regulating the consequences of acts ultra vires to company directors and managers and their liabilities.
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Keywords
private companies,powers and capacity,Doctrine of Ultra,Private Commercial Companies