Lee v Lee's Air Farming Ltd

Facts

Lee formed a company for aerial crop-spraying. He held nearly all the shares, was governing director and was employed as its chief pilot. He was killed while flying for it. His widow claimed workers' compensation.

Issue

Could Lee be an employee of a company he controlled?

Held

Yes. The Privy Council held that the company was a separate person, so it could contract with Lee to employ him. He was a worker, and his widow could claim.

Principle

A controlling shareholder and director can also be employed by his company.

Why it matters

It applies Salomon to employment.

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