time However there are certain restrictions while making such borrowings If companies go beyond their powers to borrow then such borrowings may be deemed as ultravires ULTRA VIRES Jahangir R ID: 1030103
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2. IntroductionBorrowing is an indispensable part of day to day transactions of a company, and no company can be imagined to run without borrowing from time to time.However, there are certain restrictions while making such borrowings. If companies go beyond their powers to borrow then such borrowings may be deemed as ultra-vires.ULTRA VIRES
3. Jahangir R. VsShaamji Ladha(1866)LakshamanaswamiMuddalair Vs Life InsuranceCorporation of indiaAIR 1963 SC 1185)
4. MEANING OF THE DOCTRINE
5. WHY IS THE DOCTRINE NEEDED?ASSURENCE TO CREDITORS AND SHAREHOLDERS RIGHTEOUS UTILIZATION OF FUNDS OF THE COMPANYTO PREVENT INSOLVENCY OF THE COMPANYTO KEEP A CHECK ON THE DIRECTORS OF THE COMPANY
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10. CONCLUSION
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