Any action taken by a company outside its stated objectives is regarded as

"Ultra vires" is the correct term for an action taken by a company outside its stated objectives. The term is a Latin phrase which means "beyond the powers." This means that the company has exceeded its legal authority to act, as defined by its memorandum and articles of association. Such actions are considered void and unenforceable in law. The purpose of the ultra vires doctrine is to protect shareholders and creditors from the misuse of company funds and assets by the company's management.