Before the Industrial Revolution and the lifting on restrictions for private individuals to start companies,[2] corporations were granted concessions from the state to operate a trade.
The Cohen Committee (Cmnd 6659, 1945) para 12 recommended every company ‘should, notwithstanding anything omitted from its memorandum of association, have as regards third parties the same powers as an individual.
Then the Jenkins Committee (Cmnd 1749, 1962) para 42 would have replaced constructive notice with various statutory rules but not abolished the ultra vires doctrine itself.
This recommended abolishing constructive notice and that actions of a company could not be called into question for lack of capacity, but still no ultra vires abolition.
A third party may still find that a contract is voidable (though not void, meaning that equitable bars to rescission of agreements operate) if it was clear that the person they dealt with was conducting themselves beyond the scope of their authority.
Under the Companies Act 2006 section 171 directors must observe the constitutional limits on their powers, and are liable to pay compensation if they fail.