Macaura V Northern Assurance

It gives an example of when courts will treat shareholders and a company as one in a situation where a company is used as an instrument of fraud. Members have no interest in a companys property.

Case Law Company Corporate Personality Insurance Macaura V Northern Assurance Co 1925 Youtube

Mr EB Horne was formerly a managing director of.

. The owner of a timber estate sold all the timber to a company which was owned almost solely by him. The effect of the House of Lords unanimous ruling was to uphold firmly the doctrine of corporate personality as set out in the Companies Act 1862 so that creditors of an insolvent company could not sue the companys shareholders for payment of outstanding debts. He insured the timber against fire but in his own name.

Gilford Motor Co Ltd v Horne 1933 Ch 935 is a UK company law case concerning piercing the corporate veil. He was the companys largest creditor. This decision followed the much earlier case of Macaura v Northern Assurance 1925.

Salomon v A Salomon and Co Ltd 1897 AC 22. On the banks instructions he insured the property. He was the owner and sole shareholder of the company but his Insurable interest only extended to the value of the shares in the company and he could not recover when the property was damaged.

Salomon v A Salomon Co Ltd 1896 UKHL 1 1897 AC 22 is a landmark UK company law case. Macaura v Northern Assurance Co Ltd 1925 AC 619. Separate Legal Personality SLP is the basic tenet on which company law is premised.

Establishing the foundation of how a company exists and functions it is perceived as perhaps the most profound and steady rule. Commencing with the Salomon case the rule of SLP has been followed as an uncompromising precedent in several subsequent leading cases such as Macaura v Northern Assurance Co Lee v Lees Air Farming Limited 4 and the Farrar case 5. The requirements of correctly constituting a limited company.

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