One issue resulting from the memorandum's listing of the objects of association was the subject of lengthy discussion for many years. The courts determined that the corporation was not permitted to make contracts with legal force or take any actions that were inconsistent with the memorandum's stated purposes of organisation. Since the Companies Act of 1989, the law has undergone significant modification, and only very seldom will the previous law be applicable. The necessity of comprehending the common law rules was not entirely eliminated by the revisions, nevertheless.
The necessity of comprehending the common law rules was not entirely eliminated by the revisions, nevertheless. This chapter will first look at the history and rationale behind the common law standards, then the new rules, and then briefly touch on the challenges that anyone attempting to bring up an issue of supra vires could have in the few instances when it might still be relevant.
