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Reform of the ultra vires rule: A personal view.
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- Words:
- 4488
- Submitted:
- Mon Jun 19 2006
... Company Lawyer 1987 REFORM OF THE ULTRA VIRES RULE: A PERSONAL VIEW S.N. Frommel. Legislation: Council Directive 68/151 on company law Art.9 Abstract: Paper submitted to the Department of Trade and Industry in September 1986. *11 The following paper by Dr SN Frommel [FNa1] was submitted to the Department of Trade and Industry in September 1986. The consultative document was published at the end of July. The Consultative Document: A Critical Appraisal The consultative document issued by the Department of Trade and Industry (DTI) consists of a report prepared by Dr D Prentice, preceeded by a short introduction. The great respect I have for Dr Prentice does not, I hope, preclude a friendly but critical appraisal of his paper. Ultra vires and powers of directors I believe the DTI should have asked Dr Prentice to conduct an inquiry into 'the powers of directors to bind a company in transactions with third parties' which is the wider and
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