Legal Definitions - extra vires

Extra vires is a Latin term meaning "beyond the powers." It describes an action taken by an individual or entity that exceeds the scope of their legal authority or powers. This concept is most commonly applied to corporations, government agencies, or other organizations that act outside the specific purposes or powers granted to them by law, their foundational documents (like a corporate charter or articles of incorporation), or their governing statutes. When an act is deemed extra vires, it means the entity did not have the legal capacity to perform that act.

• Example 1: A local library board, whose legal mandate is to manage library services and resources, decides to use public funds allocated for new books to instead purchase and operate a commercial movie theater.

  Explanation: The act of purchasing and operating a commercial movie theater would be considered extra vires for the library board. Its powers are legally confined to library-related activities, and running a for-profit entertainment venue falls outside its authorized scope of operations.

• Example 2: A national environmental protection agency, established by statute to regulate pollution and conserve natural resources, attempts to unilaterally impose new national income taxes on citizens to fund its projects.

  Explanation: The agency's attempt to levy income taxes is extra vires. Its enabling legislation grants it powers related to environmental regulation, not taxation. The power to impose taxes typically rests with the legislative branch of government, making this action beyond the agency's legal authority.

• Example 3: A homeowners' association (HOA), whose bylaws state its purpose is to maintain common areas and enforce community rules, votes to establish and run a private daycare center for residents' children, using HOA fees to cover operational costs.

  Explanation: Operating a daycare center would likely be deemed extra vires for the HOA. Its bylaws define its powers and responsibilities, which typically do not include commercial ventures like childcare services. Such an undertaking would exceed the authority granted to it by its governing documents.