Macaura v Northern Assurance Co Ltd
1925 · [1925] AC 619
Posted By lanbuk.com
- Facts
- Macaura sold his timber to a company in which he held almost all the shares. He then insured the timber in his own name. It was destroyed by fire.
- Issue
- Did Macaura have an insurable interest in timber owned by his company?
- Held
- No. The timber belonged to the company. As a shareholder, and even as a creditor, Macaura had no legal or equitable interest in it.
- Principle
- A company's property belongs to the company, not to its members.
- Why it matters
- It shows the hard side of for the controller.
Words and Latin in this note
- Separate legal personality
- The rule that a registered company is a legal person distinct from its members and directors. It owns its own property, owes its own debts, and sues and is sued in its own name. Salomon v Salomon is the leading case. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.