Actions undertaken without legal authority constitute an excess of power. This principle, central to corporate and administrative legality, invalidates actions that fall outside the scope of permissible activities. For instance, a corporation chartered to manufacture textiles cannot legitimately engage in real estate development; such an action would be considered legally void.
This principle’s significance resides in protecting stakeholders, ensuring organizational accountability, and maintaining regulatory compliance. Historically, it served as a crucial safeguard against abuse of power, limiting the potential for organizations to act in ways not originally intended or authorized. It provides a legal framework for challenging actions that overstep established boundaries.
