A. the executive has to reconsider the action
B. such an action should never be brought up again
C. only the legislature can deal with such an action
D. the action is illegal and of no effect
E. a vote of no confidence has been passed on the executive by the judiciary
Correct Answer:
Option D – the action is illegal and of no effect
Explanation:
Ultra vires acts are any acts that lie beyond the authority of a corporation to perform. Ultra vires acts fall outside the powers that are specifically listed in a corporate charter or law. This can also refer to any action that is specifically prohibited by the corporate charter.
The roots of the term are from a Latin phrase that means beyond the power. It is the opposite of under proper authority – intra vires. You will also find the term in the legal profession.
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