Lee v Lee’s Air Farming Ltd [1961]

Lee formed the company, Lee’s Air Farming Ltd. He owned all the shares except one. He was the company’s sole governing director. He was also employed by the company as its chief and only pilot.
Lee was killed while flying for the company.
His wife made a claim for workmen’s compensation under the New Zealand workmen’s

compensation legislation. Her entitlement to such compensation depended on whether or not Lee was a worker ie. a person who has entered into a contract of service with an employer.
The New Zealand Court of Appeal refused to hold that Lee was a worker, holding that a man could not in effect, employ himself.
However, the Privy Council allowed Mrs Lee’s claim. Lee may have been the controller of the company in fact but in law, they were distinct persons.
He could therefore enter into a contract with the company, and could be considered to be an employee. The widow was therefore entitled to an award in respect of workmen’s compensation.

held

A company can own property in its own name. Section 16(5) only mentions land but there is no doubt that a company may own any other sort of property.
The property of a company belongs to it and not to its members.
Even if a person owns all the shares in a company (through nominee shareholdings), he does not own the company’s property, nor does he have any legal or equitable interest there.
He does not even have an interest in the company’s property that can be insured.