What are Ultra Vires Activities?

Ultra vires activities are any type of business activity or action that is taken by a corporation, but is not sanctioned by the regulations outlined in the company charter. Depending on the circumstances, ultra vires activities can lead to legal action on the part of shareholders. At the same time, ultra vires activities can also be the cause for the initiation of lawsuits by third parties, such as consumers or other entities within the same industry.

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