Under older common law,shareholders could sue a company that conducted business beyond the scope of its articles.These actions are called:

Question

Quizplus · Accepted Answer

Ultra vires means "beyond the powers," and refers to actions taken by a company that are outside the scope of its articles of incorporation. Under common law, shareholders could sue a company for engaging in ultra vires acts, but this remedy has been largely displaced by modern corporate law that allows companies to engage in any lawful activity, so long as it is not explicitly prohibited by law.

Under Older Common Law,shareholders Could Sue a Company That Conducted