The case of Lee v Lee's Air Farming concerns the veil of incorporation and separate legal personality.the appellant's husband held 99% of the company's shares. he was killed while on the job, due to a plane crash. Mrs Lee then claimed for compensation under the Workmen's compensation Act 1922. The Court of Appeal held that since the deceased was the governing director and had full control of the company, he could not also be an employee of the company.
After appealing the case, it was ruled that an owner can also qualify to be an employee of the same business.the company was considered to be a separate legal person.
It is an agreeable analysis on separating a company and its owners or shareholders. It is necessary, especially in cases where entrepreneurs are also solely dependent on the business which they have invested in. Just as in any business, you need to be able to claim such things as insurance, all employees should be able to receive these benefits regardless of how much they have invested in the business.
http://davidscrimshaw.blogspot.com/2005/10/keywords-breakfast-beans-and-lees-air.html#starthere
http://en.wikipedia.org/wiki/Lee_v_Lee%E2%80%99s_Air_Farming
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i want to ask somethimg...do you know the method of lifting the veil incorporation as to make the person behind the company to be responsible for the act of the company???
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ReplyDeletethe veil can be lifted in the following cases; when there is fraudulent trading, 2 when the company is operating without a trading certificate 3 when it is a public company without the minimum number of share holders required by the statutes and many more illuminated in case laws such as that of Daimler Vs continental rubber company and penrose vs mytyr
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