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Actions beyond the powers conferred by the company’s Memorandum of Association are ultra vires and are therefore deemed invalid. Since the company is not the trustee of its shareholders, the shareholders can not implement the contracts entered into by the company as a end result of he is neither a party to the contract nor entitled to any profit from it. In order to carry out its operations without these limitations and constraints, the Memorandum of Association confers sufficient powers in most cases. However, once powers are established, it cannot override those powers with out first amending the Memorandum of Association. A company can enter right into a contract to conduct enterprise on its behalf.
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