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