Secretary of State for Trade and Industry v Bottrill [1999] EWCA Civ 781 is a UK company law and UK labour law case, which relates to issues such as lifting the corporate veil and the definition of "employee".
Mr Bottrill was the managing director of the insolvent Magnatech UK Ltd, the fact that he was the only shareholder did not preclude his claim for unpaid wages (£346.15 a week) from the National Insurance Fund.
Mr Bottrill’s sole shareholding was merely a temporary measure before the American Magnatech Group would take over ownership.
The gloss sought to be given by Mummery P to “employee” in the ERA, based as it is on the ability of the controlling shareholder to prevent his dismissal, is all the more surprising when applied to a case such as the present when Mr. Bottrill was powerless to prevent his actual dismissal which triggered his claim… We recognise the attractions of having in relation to the ERA a simple and clear test which will determine whether a shareholder or a director is an employee for the purposes of the Act or not.
If an individual has a controlling shareholding that is certainly a fact which is likely to be significant in all situations and in some cases it may prove to be decisive.