Lee v. Lee's air farming ltd (1961) A.C. 12(p.c.)

By -

(Members are different from co.- corperate personality)

A company was formed for the purpose of aerial top dressing.
             Lee, a qualified pilot held all but one of the shares in the company. he voted himself the Managing Director and got appointed as chief pilot at a salary.
  He was killed in air crash while wrkng for company and her widow claim compensation for death of her husband in the course of his employment.
             The company opposed on the ground that lee was not a mere worker as the same person could not be the employer and employee at the same time.
                than, the decision of privy council comes that lee is the M.D. at the same time the chef pilot (i.e. the servant of the company)
                 lee was the seprate person from the company he formedand his widow was entitled to get the compensation .

In effect the magic of incorporate personality enabled him(lee) to be the master and the servant at the same time and enjoy advantage of both.

Comments

Post a Comment

Popular posts from this blog

OBJECTIVE OF STUDYING INCOME TAX

By -
What is objective of studying tax.. especially income tax?? The taxes are the basic source of revenue for government , revenue raised from the taxes are utilized for meeting the expense of government like, provisions of education , infrasuctural facilities such as road dams etc.. The taxes that are levied directly on the income or wealth of person are the direct taxes while the taxes which are paid by the person other than who utilizes the product are indirect taxes.. while at present all the indirect taxes are subsumed in  GST... but still some are not subsumed in gst like customs.. GST(Goods and Service taxes) Income tax is one of the form of direct taxes.. and by studying income tax.. we get a proper knowledge about the tax on income of an individual ,company  firm.. etc..
Read more

SHELF PROSPECTUS

By -
PROVISIONS OF SECTION 31 OFCOMPANIES ACT, 2013 MEANING SHELF PROSPECTUS MEANS A PROSPECTUS ISSUED BY THE COMPANIES AS PRESCRIBED BY SEBI (PFC's etc) FOR SUBSCRIPTION IN ONE OR MORE ISSUES OVER A CERTAIN PERIOD (ONE YEAR FROM THE DATE OF 1ST ISSUE) WITHOUT THE ISSUE OF A FURTHER PROSPECTUS AT EVERY STAGE OF OFFER OF SECURITIES.     VALIDITY SHELF PROSPECTUS WILL BE VALID FOR A PERIOD OF ONE YEAR, FROM THE DATE OF FIRST ISSUE OF SECURITIES. INFORMATION MEMORANDUM A COMPANY FILLING A SHELF PROSPECTUS SHALL BE REQUIRED TO FILE AN INFORMATION MEMORANDUM ALONG WITH THE SHELF PROSPECTUS. UPDATE OF INFORFAMTION MEMORANDUM. AN UPDATE OF INFORMATION MEMORANDUM SHALL BE FILLED , EVERY TIME AN OFFER OF SECURITIES IS MADE. SUCH MEMORANDUM TOGETHER WITH THE SHELF PROSPECTUS SHALL CONSTITUTE THE PROSPECTUS.
Read more