(a) The ruling in the case of Ashbury Railway Carriage vs.Riche (1875) stated that that an act that has not been authorized by the objects clause of a company’s Memorandum of Association is ultra vires to the company and the members cannot ratify it.”
Discuss.(8 marks)
(b) Explain the various ways in which persons intending to form a company may avoid personal liability on contracts they make on behalf of the proposed company.(6 marks)
(c) It has been held that the Memorandum and Articles of Association of a company shall,when registered,bind the company and the members to the same extent as if the documents had been signed and sealed by each member and contained covenants on the part of each member to observe all the provisions of the memorandum and the articles.
Explain the effect of this provision on the relationship between shareholders and their company and between shareholders themselves.(6 marks)
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