Question
At common law, a company had limited legal capacity, and the common law ultra vires doctrine decreed that, where a company entered into a transaction
At common law, a company had limited legal capacity, and the common law ultra vires doctrine decreed that, where a company entered into a transaction that was outside the scope of the objects clause in its memorandum of association, the act was void and unratifiable. In the light of and in comparison with that historical concept of a companys legal capacity, YOU ARE REQUIRED TO 6.1.1 Explain what the legal capacity of a company is in terms of the Companies Act 71 of 2008; and 6.1.2 Explain the legal consequences where a company enters into a transaction that infringes a limitation on its capacity set out in its memorandum of incorporation, for example, where it enters into a contract of a kind that the companys memorandum of incorporation forbids it from entering into; and 6.1.3 Explain the concept of a so-called "RF" company and the legal implications for an outsider who enters into a contract with a company whose name includes the abbreviation "RF".
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