Question
A company was promoted to carry on the business of crop-spraying from the air. X, one of its promoters, held bulk of its shares and
A company was promoted to carry on the business of crop-spraying from the air. X, one of its promoters, held bulk of its shares and was its Managing Director. Subsequently, the company entered into a service agreement with him and engaged him, as its chief pilot also. While flying one of the aircrafts of the company, in the course of business, he died in air-crash. His wife has claimed compensation under the provisions of the Workmen's Compensation Act. The claim is being resisted by the solicitor of the company who contends that X and the company were one and the same person and a person cannot employ himself, no compensation is payable. Considering the provisions of the Companies Act, 2013, suggest your views in each of the following case:
(a) Is Company separate legal entity from Mr. X?
(b) Is wife of Mr. X entitled to claim compensation?
(c) Can Managing Director of company act as chief piolet simultaneously in same company?
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