What does the Latin term "ultra vires" mean?

The Latin term "ultra vires" translates to "beyond the powers." This principle is commonly used in legal contexts, particularly in administrative law and corporate governance. It refers to actions taken by an individual or entity that exceed the authority granted to them by law or by their governing documents.

For example, if a company’s board of directors makes a decision that is outside the scope of authority defined in the company’s articles of association, that decision may be deemed ultra vires. The concept is crucial in ensuring that entities operate within their designated limits and adhere to the rules or regulations that govern them. It serves to protect stakeholders by preventing unauthorized actions that could lead to liability or other adverse effects.

Understanding "ultra vires" is important for grasping how legal authority functions, particularly in contexts where limits of power need to be clearly defined and respected.