A In Lee (Catherine) v. Lee’s Air Farming

A company also has perpetual succession despite of the death of its
shareholders. In Lee (Catherine) v. Lee’s Air Farming Ltd. 1960, the facts
disclosed that in 1954, Mr. Lee had formed the respondent company carrying on
the business of crop spraying from the air. Mr. Lee owned 2,999 of the company’s
3,000 1 shares. Apart from that, he also was the company’s governing director
whereby he had appointed himself as the only pilot of the company at a salary
arranged by himself. In March 1956, Mr. Lee was killed while piloting an
aircraft during the course of top-soil dressing. The appellant want to claim
compensation from the company as the employer of her husband under the New
Zealand Workers’ Compensation Act 1922. The issue for determination was
whether there existed the relationship of employer and employee between the
company and Mr. Lee. The court held in favour of appellant and she was entitled
to compensation. Following the grounds of the decision in Salomon’s case, Mr.
Lee was employed by the company in the sense required by the Act 1922


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