Section 500: Penalty for carrying on ultra vires business
The Companies Act, 2017 · Federal Acts · in_force
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500. Penalty for carrying on ultra vires business.—If any business or part of business carried on or any transaction made, by a company is ultra vires of the company shall be an offence and every person who acted as a director or officer of the company and is responsible for carrying on such business shall be liable to a penalty of level 3 on the standard scale, and shall also be personally liable for the liabilities and obligations arising out of such business or transaction.
Effective date: 2017-05-30
Related sections
Section 499: Punishment for non-compliance of directive of CourtSection 501: Penalty for improper use of word “Limited”Section 498: Liability of directors for allotment of shares for inadequate considerationSection 502: Penalty where no specific penalty is providedSection 497: Penalty for wrongful withholding of propertySection 503: Power to accord approval subject to conditions
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