Acem Practice Test & Exam Prep | Australia

A company has limited capacity defined strictly by its constitution, and any acts beyond those objects are void under the ultra vires doctrine. A company has the legal capacity and powers of an individual, both inside and outside this jurisdiction, as well as the power to issue shares and debentures. A company has the legal capacity of a partnership, requiring all directors to consent personally to execute binding agreements. A company's legal capacity is restricted to trading actions and does not extend to holding real property or granting floating charges.