Lee v. Lee's Air Farming Ltd. [1960] UKPC 33 is a company law case from New Zealand, also important for UK company law and Indian Companies Act 2013, concerning the corporate veil and separate legal personality. The Judicial Committee of the Privy Council reasserted that a company is a separate legal entity, so that a director could still be under a contract of employment with the company he solely owned.
The facts of the case are as follows:
* Mr. Lee was the sole director and shareholder of Lee's Air Farming Ltd.
* Mr. Lee was also the chief pilot of the company.
* Mr. Lee was killed in a plane crash while flying for the company.
* Mrs. Lee, Mr. Lee's widow, claimed workers' compensation from the company.
The issue in the case was whether Mr. Lee was an employee of the company for the purposes of workers' compensation.
The Court of Appeal of New Zealand held that Mr. Lee was not an employee of the company. The court reasoned that Mr. Lee was the sole director and shareholder of the company, and that he had complete control over the company's affairs. The court also found that Mr. Lee was not subject to the company's control in the same way that an employee would be.
Mrs. Lee appealed the decision of the Court of Appeal to the Judicial Committee of the Privy Council. The Judicial Committee of the Privy Council upheld the decision of the Court of Appeal. The Judicial Committee of the Privy Council held that Mr. Lee was not an employee of the company because he was the sole director and shareholder of the company. The Judicial Committee of the Privy Council also found that Mr. Lee was not subject to the company's control in the same way that an employee would be.
The decision in Lee v. Lee's Air Farming Ltd. is an important case in company law. The decision reaffirms the principle that a company is a separate legal entity from its shareholders and directors. This principle is important because it protects the interests of creditors and other third parties who deal with companies. The decision also shows that the courts will not easily pierce the corporate veil and hold shareholders and directors personally liable for the debts and obligations of their companies.
The decision in Lee v. Lee's Air Farming Ltd. has been applied in a number of other cases, including in the United Kingdom and India. The decision has also been cited in academic writing on company law.
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29 авг 2024
