A Company can not do anything beyond its powers, and any act beyond such powers is '" Ultra Vires" and void an can not be verified even by the assent of the whole body of shareholders. An ultra vires act is improper because it is violation of the law and diversion of the assests of the Company to a purpose not contemplated by the members and creditors of the Company. An ultra vires act is not binding upon the Company and can not be ratified. The Company can be restrained from employing its funds for purpose other than those stand in the Memorandum. Thus a Company formed to carry on one trade can not carry on another trade.
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