The House of Lords in Macaura v Northern Assurance (1925) ruled that shareholders and creditors of a company lack an insurable interest in the company's assets. This decision emphasises the separate legal personality between a company and its shareholders, shaping future company and insurance law.
Separate Legal Entity Doctrine: Macaura v Northern Assurance ruled on the separate legal personality of a company and the legal separation between a company and its shareholders, highlighting that individual shareholders cannot claim ownership or direct interest in corporate assets.
