Section 17 — Companies Act 1993: Validity of actions

17 Validity of actions (1) No act of a company and no transfer of property to or by a company is invalid merely because the company did not have the capacity, the right, or the power to do the act or to transfer or take a transfer of the property. (2) Subsection (1) of this section does not limit— (a) Section 164 of this Act (which relates to injunctions to restrain conduct by a company that would contravene its constitution); or (b) Section 165 of this Act (which relates to derivative actions by directors and shareholders); or (c) Section 169 of this Act (which relates to actions by shareholders of a company against the directors); or (d) Section 170 of this Act (which relates to actions by shareholders to require the directors of a company to take action under the constitution or this Act). (3) The fact that an act is not, or would not be, in the best interests of a company does not affect the capacity of the company to do the act. Compare: 1955 No 63 s 18A; 1983 No 53 s 8