ACCA LW · Chapter 8 · Question 2 of 11
In Lee v Lee's Air Farming Ltd, Mr Lee was the controlling shareholder and sole director of a company and was also employed by it as a pilot. Why was his widow entitled to compensation when he was killed at work?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Because the company was a separate legal person, it could enter a contract of employment with him
Explanation
Following the separate personality principle in Salomon, the company and Mr Lee were different persons, so a valid contract of employment could exist between them even though he controlled the company. He was therefore a 'worker' for compensation purposes. The court upheld rather than lifted the veil.
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