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s 38

Doctrine of ultra vires abolished

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Part 3Legal capacity and powers
Division 2Doctrine of ultra vires abolished

38 Doctrine of ultra vires abolished

(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 that the co‑operative’s officers and members give effect to the provisions of the co‑operative’s rules relating to the primary activities or powers of the co‑operative.

(2)

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

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