Companies Act 2014 section 1239

Capacity of an unlimited company

Section 1239 defines the legal capacity of an unlimited company, linking it directly to the objects stated in its memorandum rather than granting the unlimited capacity that applies to a private company limited by shares (LTD).

• An unlimited company has the capacity to carry out any act or thing set out in the objects of its memorandum.
• The term "object" includes anything described in the memorandum as a power, regardless of whether the word "power" is actually used.
• Where an object is stated in the memorandum without further elaboration, the company may do anything it considers requisite, advantageous, incidental to, or that facilitates the attainment of that object, provided it does not conflict with any legislation.
• All subsequent references to an unlimited company's objects in this Part of the Act are to be interpreted in line with this broader definition.

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