Acem Practice Test & Exam Prep | Australia

It decided that worker's compensation only applies to non-corporate partnerships and was thus inapplicable to incorporated air farming businesses. It ruled that because Lee held 2,999 of the 3,000 shares, the company was a sham and he was personally liable for his own injuries. It held that the company was a separate legal entity, meaning Lee could act in one capacity as director to employ himself, and in another capacity as employee. It held that Lee's role as governing director precluded him from being an employee because a person cannot contract with themselves.