In the pioneering case Anisminic/Foreign Compensation Commission, Lord Reid was accredited with the formulation of the Ultravires doctrine. Ultra vires, however, with unreason, was mentioned much earlier by Lord Russell in the well-known case, Kruse v Johnson, with regard to the challenge to laws and other rules. Anisminic is best known for not depriving the courts of responsibility for the nullity of a decision, even if a law explicitly prevents the decision from being subject to judicial review. Other cases such as Bromley LBC/Greater London Council and Council of Civil Service Unions/Minister for the Civil Service have attempted to refine the doctrine. State institutions created by a state are public bodies governed by municipal charters and other statutory power subsidies. These grants are in accordance with the statutes of a private organization. Historically, the Ultra-Vires concept has been used to narrowly develop the powers of a government unit. Non-compliance with legal limits has been described as ultra vires. Similarly, state laws in almost all legal orders have significantly reduced the importance of the Ultravires doctrine.
For example, Section 3.04 (a) of the Revised Model Business Corporation Act of 1984 states that “the validity of business actions must not be questioned on the grounds that the company does not or does not have the capacity to act.” There are three exceptions to this prohibition: it may be invoked by the company or its shareholders against current or former executives or directors of the company because of an excess of their authority, by the Attorney General in a procedure of dissolution of the company or the filing of the transaction of unauthorized transactions, or by shareholders against the company, at the commission of an ultra vire law or the transfer of ultra vir of real or personal property. If other types of agencies, such as the public authorities, take measures that go beyond their legal powers, their actions can also be characterized as ultra vires acts. A. No. The Court of Justice has ruled that it is not ultra vires to rent communal property that is not currently necessary for communal purposes. Meredith v. Fullerton, 83 N.H. 124 (1927); Curtis v. Portsmouth, 67 N.H.
506 (1894). Other types of activities that are “secondary” to municipal government operations are not ultravires. For example, in the well-known case of Clapp v. Jaffrey, 97 N.H. 456 (1952), the court found that private ploughing through the city is an ultra-vires activity, unless (1) it is only incidental for ploughing highways and (2) the city is paid the actual marginal costs for ploughing next to private property. The last sentence is the key to the distinction. As in Smith v. Epping, “a party that relies on the representations of a government official is in danger that the official acted in an ultra vires manner.” 124 N.H. to 470. In other words, it is not reasonable to rely on the statement of a public servant who does not have the power to act on this issue.
However, a bad decision of the good public servant is not ultra vires.