Macleod and the offence of defrauding the company in one-person businesses: the divergence between legal principle and logic widens
McConvill, James and Bagaric, Mirko 2003, Macleod and the offence of defrauding the company in one-person businesses: the divergence between legal principle and logic widens, Australian journal of corporate law, vol. 16, no. 1, pp. 53-64.
Centre for National Corporate Law Research, University of Canberra
Place of publication
Belconnen, A.C.T.
Publication date
2003-09
ISSN
1037-4124
Summary
The recent High Court decision in Macleod v R establishes that a director and sole shareholder may be convicted of fraudulently applying a company's property even though the person has consented to the personal use of the company's property. It is contended that while this decision is consistent with the weight of precedent, it is wrong in principle. The decision implies that corporations are not only separate legal entities, but that they are highly virtuous legal entities -- incapable of being imbued with the dishonest intentions and activities of the individuals controlling the company.