In what way does the decision in the case of Macaura Versus Northern Assurance Company Limited (1925) illustrate the corporate entity theory?

This case is authority for the proposition that a company being a legal person has capacity to own property. The property of a registered company is vested in it and the company has an insurable interest in such property.
• In this case it was held that since the timber belonged to the company the company alone had an insurable interest in it and the plaintiff was not entitled to indemnity.
• The principle enunciated in this case is embodied in section 16 (2) of the Companies Act.

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