In spite of these limitations, the ultra vires doctrine still has applicability in New York since it holds the directors of a corporation personally liable to it for any losses it has sustained as a result of the commission of ultra vires activities by the corporation.<\/p>\n

Who may invoke an ultra vires defense?<\/h4>\n

The BCL allows for an ultra vires defense to be asserted in three scenarios. One of these involves a derivative action, or action by or in the right of the corporation, for a favorable judgment against incumbent or former officers or directors for damages resulting from an unauthorized act. Ultra vires also applies in an instance of the attorney general acting to annul or dissolve a corporation or enjoin it from engaging in unauthorized business. Finally, It applies to an action by a shareholder to enjoin a corporation from engaging in the unauthorized transfer to or by it of property.<\/p>\n

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What is and what is not legal for a company to do in New York state? Once a company has been duly incorporated, the scope of its actions is limited both by state laws and its own bylaws. In this article, a corporate law attorney describes the powers of a corporation in New York. Which…<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[630],"tags":[],"class_list":["post-81529","post","type-post","status-publish","format-standard","hentry","category-new-york-corporate-law"],"acf":[],"yoast_head":"\n