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Employment status: Controlling shareholder in company was its employee

This report relates to 1 case(s)

In Sellers Arenascene Ltd v Connolly 2.2.01 Court of Appeal, the Court of Appeal holds that a person with a controlling shareholding in a company of which he was a director was an employee of that company. The fact that he had a controlling shareholding was a significant factor in deciding whether or not he was an employee but, in considering whether or not the service agreement between the company and him gave rise to an employer/employee relationship, the employment tribunal had attached to that factor a significance that excluded a proper consideration of other relevant factors.