Definition
Actions beyond the legal authority or power of a corporation or public body, Latin for 'you can't do that.' The legal version of a kid trying to use their parent's credit card without permission.
Example Usage
The board's decision to enter the pharmaceutical industry was ruled ultra vires, exceeding the corporation's chartered purpose.
Origin
Latin phrase meaning 'beyond the powers,' applied to corporate law in the 19th century
Fun Fact
The doctrine has weakened over time as corporate charters became more broadly written, because nobody wants to be told they can't pivot to NFTs.
Source: Corporate and administrative law terminology
Related Terms
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See “ultra vires” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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