Memorandum of Association — SPCC STD 11 Commerce — Question

In the object clause of Memorandum of Association, the Primary and Secondary objectives of the company are mentioned. Any work which is not mentioned in object clause cannot be undertaken by the company even if it is beneficial for the company. Directors cannot work outside the purview of Memorandum. Any work outside the purview of Memorandum of Association is known as ultra vires. Even if all the shareholders agree to work outside the object clause of Memorandum of Association, it cannot be considered valid and it is considered void. Any ultra vires activity carried out by company makes directors personally responsible for it.