41Doctrine of ultra vires not to apply

41 Doctrine of ultra vires not to apply

41 Doctrine of ultra vires not to apply

(1) The objects of this Division are—

(a) to provide that the doctrine of ultra vires does not apply to co-operatives; and

(b) without affecting the validity of a co-operative’s dealings with others—to ensure the co-operative’s officers and members give effect to the provisions of the rules of the co-operative relating to the primary activities or powers of the co-operative.

(2) This Division is to be construed and to have effect in accordance with subsection (1).