sec.240Abolition of doctrine of ultra vires

sec.240 Abolition of doctrine of ultra vires

The object of this section is— to abolish any application of the doctrine of ultra vires to societies; and to ensure that societies give effect to any restrictions on their powers, but without affecting the validity of their dealings with outsiders. In this section, a reference to the doing of an act by a society includes a reference to— the making of an agreement by the society; and a transfer of property to or by the society. Sections 66 and 75 apply to a society subject to any restrictions on its powers expressly imposed under this Act or the society’s rules. A society contravenes this subsection if— a society exercises a power contrary to a restriction mentioned in subsection (3) ; or the society does an act otherwise than in pursuance of its objects under this Act. The exercise of the power, or the act, is not invalid merely because of the contravention. An officer of a society who is involved in the contravention contravenes this subsection. An act of the officer is not invalid merely because, by doing the act, the officer contravenes subsection (6) . The society or officer does not commit an offence merely because of a contravention of this section. The fact that— by exercising a power mentioned in subsection (4) (a) , or doing an act mentioned in subsection (4) (b) , a society contravened, or would contravene, subsection (4) ; or by doing a particular act, an officer of a society contravened, or would contravene, subsection (6) ; may be asserted or relied on only in the following circumstances— a prosecution of a person for an offence against this Act; an application for an injunction under section 237 to restrain the society from entering into an agreement; a proceeding (other than an application for an injunction) by the society, or by a member of the society, against an officer or former officer of the society; an application by the registrar or by a member of the society for the winding-up of the society. Subsection (11) applies if, had subsection (9) not been enacted, the Supreme Court would have power under section 237 to grant, on the application of a person, an injunction restraining a society, or an officer of a society, from engaging in particular conduct constituting a contravention of subsection (4) or (6) . The Supreme Court may, on the application of the person, order the society or the officer to pay damages to the person or to someone else. This section applies subject to section 67 . In this section— restriction includes prohibition. s 240 amd 1999 No. 27 s 76 sch 1 pt 2 (sec.240-ssec.1) The object of this section is— to abolish any application of the doctrine of ultra vires to societies; and to ensure that societies give effect to any restrictions on their powers, but without affecting the validity of their dealings with outsiders. (sec.240-ssec.2) In this section, a reference to the doing of an act by a society includes a reference to— the making of an agreement by the society; and a transfer of property to or by the society. (sec.240-ssec.3) Sections 66 and 75 apply to a society subject to any restrictions on its powers expressly imposed under this Act or the society’s rules. (sec.240-ssec.4) A society contravenes this subsection if— a society exercises a power contrary to a restriction mentioned in subsection (3) ; or the society does an act otherwise than in pursuance of its objects under this Act. (sec.240-ssec.5) The exercise of the power, or the act, is not invalid merely because of the contravention. (sec.240-ssec.6) An officer of a society who is involved in the contravention contravenes this subsection. (sec.240-ssec.7) An act of the officer is not invalid merely because, by doing the act, the officer contravenes subsection (6) . (sec.240-ssec.8) The society or officer does not commit an offence merely because of a contravention of this section. (sec.240-ssec.9) The fact that— by exercising a power mentioned in subsection (4) (a) , or doing an act mentioned in subsection (4) (b) , a society contravened, or would contravene, subsection (4) ; or by doing a particular act, an officer of a society contravened, or would contravene, subsection (6) ; may be asserted or relied on only in the following circumstances— a prosecution of a person for an offence against this Act; an application for an injunction under section 237 to restrain the society from entering into an agreement; a proceeding (other than an application for an injunction) by the society, or by a member of the society, against an officer or former officer of the society; an application by the registrar or by a member of the society for the winding-up of the society. (sec.240-ssec.10) Subsection (11) applies if, had subsection (9) not been enacted, the Supreme Court would have power under section 237 to grant, on the application of a person, an injunction restraining a society, or an officer of a society, from engaging in particular conduct constituting a contravention of subsection (4) or (6) . (sec.240-ssec.11) The Supreme Court may, on the application of the person, order the society or the officer to pay damages to the person or to someone else. (sec.240-ssec.12) This section applies subject to section 67 . (sec.240-ssec.13) In this section— restriction includes prohibition.