An act, legal in itself, but not authorized by the object clause of the Memorandum of Association of a company or statute, is:

ultra Vires the company
within Articles of Association
within Memorandum of Association
all of the above

The correct answer is A. ultra Vires the company.

An act is ultra vires if it is beyond the powers of the company. The Memorandum of Association sets out the objects of the company, and any act that is not within these objects is ultra vires. The Articles of Association set out the internal rules of the company, and any act that is not in accordance with these rules is also ultra vires.

If a company carries out an ultra vires act, the act is void and the company may be sued by any person who suffers loss as a result of the act. The company’s directors may also be personally liable for the act.

Here is a brief explanation of each option:

  • Option A: ultra Vires the company. This is the correct answer. An act is ultra vires if it is beyond the powers of the company. The Memorandum of Association sets out the objects of the company, and any act that is not within these objects is ultra vires. The Articles of Association set out the internal rules of the company, and any act that is not in accordance with these rules is also ultra vires.
  • Option B: within Articles of Association. This is not the correct answer. The Articles of Association set out the internal rules of the company, but they do not set out the objects of the company. An act that is not within the objects of the company is ultra vires, even if it is within the Articles of Association.
  • Option C: within Memorandum of Association. This is not the correct answer. The Memorandum of Association sets out the objects of the company, but it does not set out the internal rules of the company. An act that is not within the objects of the company is ultra vires, even if it is within the Memorandum of Association.
  • Option D: all of the above. This is not the correct answer. Only option A is correct.