Ultra vires (Latin: "beyond the powers") describes an act performed by a public authority, company or other body that exceeds the powers conferred on it by law or by its constitution.
In Public Law
In administrative law, a public body may act only within the powers given to it by statute. A decision taken without legal authority, for an improper purpose, or in breach of a mandatory procedure is ultra vires and may be quashed on judicial review. In Indonesia, Law No. 30 of 2014 on Government Administration describes such defects as acting beyond authority, mixing up authority, or acting arbitrarily, and allows affected persons to challenge the decision before the State Administrative Court.
In Company Law
Historically, a company could act only within the objects set out in its memorandum of association, and contracts outside those objects were void. Many jurisdictions have since softened the rule to protect third parties: in the United Kingdom, the Companies Act 2006 provides that a company's capacity is not limited by its constitution.
The Indonesian Position
Under Law No. 40 of 2007 on Limited Liability Companies, a company must have purposes and business activities stated in its articles of association, and directors must act within them. Directors who cause loss by acting outside those purposes may be personally liable, and transactions may be challenged in particular circumstances.
Related Concept
The opposite of ultra vires is intra vires: an act within the powers of the actor.