Question

Provide a case summary of the case “Lee v Lee’s Air Farming Ltd [1960] UKPC 33”...

Provide a case summary of the case “Lee v Lee’s Air Farming Ltd [1960] UKPC 33” using the IRAC method. What legal principle came out of this case in relation to why the court lifted the corporate veil in this case?

Homework Answers

Answer #1

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 legal principle is that a company is a separate legal entity from its members it is an artificial person created by the law. Called corporate veil

Therefore , The Privy Council advised that Mrs Lee was entitled to compensation, since it was perfectly possible for Mr Lee to have a contract with the company he owned. The company was a separate legal person

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