Va. Code » Title 13.1. Corporations » Chapter 9. Virginia Stock Corporation Act » Article 4. Purposes and Powers
Virginia Code

Va. Code Ann. § 13.1-629 (2026)

Lack of power to act

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A. Except as provided in subsection B, the validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act.

B. A corporation's power to act may be challenged:

1. In a proceeding by a shareholder against the corporation to enjoin the act;

2. In a proceeding by the corporation, directly, derivatively, or through a receiver, trustee, or other legal representative, against an incumbent or former director, officer, employee, or agent of the corporation; or

3. In a proceeding against the corporation before the Commission.

C. In a shareholder's proceeding under subdivision 1 of subsection B to enjoin an unauthorized corporate act, if equitable and if all affected persons are parties to the proceeding, the court may enjoin or set aside the act and may award damages for loss, except anticipated profits, suffered by the corporation or another party because of enjoining the unauthorized act.

Code 1950, § 13.1-5; 1956, c. 428; 1985, c. 522; 2019, c. 734.

Notes of Decisions
Cited in 4 cases, 1989–2012 · leading case: Drake v. Franklin Equip. Co. (In Re Franklin Equip. Co.), 416 B.R. 483 (Bankr. E.D. Va. 2009).
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Drake v. Franklin Equip. Co. (In Re Franklin Equip. Co.), 416 B.R. 483 (Bankr. E.D. Va. 2009). · cites it 4× “However, subsection (B)(2) of Virginia Code § 13.1-629 states that “[a] corporation’s power to act may be challenged .”
Bankr. L. Rep. P 75,292 in Re Lloyd C. March, Jr., Debtor. Coastal Virginia Bank v. Lloyd C. March, Jr., Unsecured Creditors Comm., Amicus Curiae, 995 F.2d 32 (4th Cir. 1993). “See Va. Code Ann. § 13.1-629 (A) (Michie 1989) ("[C]or-porate action may not be challenged on the ground that the corporation lacks or lacked the power to act.”
Young v. Fairfax Printers, Inc., 18 Va. Cir. 78 (Fairfax Cir. Ct. 1989). · cites it 3× “Section 13.1-629, Code of Virginia, 1950, as amended.”
Hu v. CorpServe, Inc., 88 Va. Cir. 450 (Westmoreland Cir. Ct. 2012). “Hu’s claim has nothing to do with challenges to ultra vires corporate acts under § 13.1-629(B). Count I is not one of the actions described in that statute.”
Va. Code Ann. § 13.1-629(A): 1 case
Drake v. Franklin Equip. Co. (In Re Franklin Equip. Co.), 416 B.R. 483 (Bankr. E.D. Va. 2009). “However, subsection (B)(2) of Virginia Code § 13.1-629 states that “[a] corporation’s power to act may be challenged .”
Va. Code Ann. § 13.1-629(B): 1 case
Hu v. CorpServe, Inc., 88 Va. Cir. 450 (Westmoreland Cir. Ct. 2012). “Hu’s claim has nothing to do with challenges to ultra vires corporate acts under § 13.1-629(B). Count I is not one of the actions described in that statute.”
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