Legal Definitions - intra vires

The term intra vires is Latin for "within the powers." It refers to an action or decision that falls within the legal authority or scope of power granted to a person, corporation, or other entity.

When an action is described as intra vires, it means that the individual or entity taking the action had the legitimate right and power to do so, according to their governing documents, laws, or delegated authority.

• Example 1: Corporate Decision-Making

  A technology company's Chief Financial Officer (CFO) authorizes the purchase of new office equipment, such as computers and servers, up to a pre-approved budget limit set by the board of directors. The company's internal policies and the CFO's job description explicitly grant them the authority to manage departmental expenditures within approved budgets.

  Explanation: This action is intra vires because the CFO is acting precisely within the financial authority delegated to them by the company's governing structure and internal rules. They are operating within their defined scope of power.

• Example 2: Government Agency Action

  The Environmental Protection Agency (EPA) issues a new regulation setting limits on industrial air pollution, based on powers granted to it by federal environmental laws passed by Congress. These laws specifically empower the EPA to protect public health and the environment through regulatory action.

  Explanation: The EPA's issuance of the regulation is intra vires because it is exercising a power explicitly conferred upon it by federal statute. The agency is operating within its legally defined mandate and authority.

• Example 3: Trustee's Actions

  A trustee manages a trust fund established for a minor beneficiary. The trust document specifies that the trustee has the power to invest the funds in conservative, low-risk assets and to disburse funds for the beneficiary's education and medical expenses. When the trustee sells some bonds to pay for the beneficiary's college tuition, they are acting within these defined parameters.

  Explanation: The trustee's actions are intra vires because they are directly aligned with the specific powers and duties outlined in the trust agreement. They are not exceeding or deviating from the authority granted to them by the creator of the trust.