Sunday, April 4, 2010

LEE V LEE’S AIR FARMING LTD (1961)



Fact
Lee who was a pilot who conducted an aerial top-dressing business, formed a company to conduct the business. Lee hold 2999 shares of the 3000 shares in the company. The remaining one share was taken by his solicitor as nominee for Lee. Under the articles of association, Lee was governing director with very wide powers. Workers’ compensation insurance was taken out, naming Lee as an employee. Lee was killed when his aeroplane crashed while engaged in aerial top-dressing.

Summary

* the company was a separate legal entity distinct from its founder, Lee
* Lee could enter into a contract of employment

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