The doctrine of ultra vires held that:

Question

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The doctrine of ultra vires held that corporations cannot be held responsible for executive actions not authorized by their corporate charter. It was a legal principle that prevented corporations from engaging in activities that were not mentioned in their organizational documents. If a corporation did engage in such activities, it would be considered ultra vires and therefore illegal. This doctrine has been largely abolished or modified in modern times, as corporate charters are typically written broadly enough to allow for a range of activities beyond their original purpose.

The Doctrine of Ultra Vires Held That