5/11/2011 Ashbury Railway Carriage and Iron Co Ltd v Riche (1875)LR 7 HL 653 (House of Lords) ·Co objects:: Make,sell,lease rail carriages Mechanical engineering and contracting ·Mining ·Co agreed to provide Riche with finance to build a railway in Belgium Held:contract void as ultra vires,ratification is wholly ineffective. Ashbury Railway Carriage and Iron Co Ltd v Riche(1875)LR 7 HL 653 (House of Lords) Clause 4 of the Articles: "an extension of the company's business beyond or for other than the objects or purposes expressed or implied in the memorandum shall take place only in pursuance of a special resolution." ·Is it a good case?? 35/11/2011 3 5 Ashbury Railway Carriage and Iron Co Ltd v Riche (1875) LR 7 HL 653 (House of Lords) • Co objects:  Make, sell, lease rail carriages  Mechanical engineering and contracting  Mining • Co agreed to provide Riche with finance to build a railway in Belgium • Held: contract void as ultra vires, ratification is wholly ineffective. 6 Ashbury Railway Carriage and Iron Co Ltd v Riche (1875) LR 7 HL 653 (House of Lords) • Clause 4 of the Articles: “an extension of the company’s business beyond or for other than the objects or purposes expressed or implied in the memorandum shall take place only in pursuance of a special resolution.” • Is it a good case???