What is the test for ultra vires the directors or the whole body of shareholders of a company?

Ontario, Canada


The following excerpt is from Hovey v. Whiting, 1887 CanLII 16 (ON CA):

Many cases are to be found in which attempts to create fundamental changes of that kind have been called in question as ultra vires the directors or the whole body of shareholders: Ashbury v. Riche, L.R. 7 H.L. 653, but this in its nature differs from them all.

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