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Tanya is an employee, sole shareholder and director of an environmental company called Henbury Pty Ltd.(Henbury).

Tanya is an employee, sole shareholder and director of an environmental company called Henbury Pty Ltd.(Henbury). The company cleans up black spots in the environment left behind by mining companies that failed to properly remediate their sites when they were finished. In the past Tanya was an employee of another company that did similar environmental protection work called Regency Pty Ltd.(Regency).


Regency, however, began laying-off staff and instead outsourcing its project work to independent contractors. To take advantage of this change Tanya cleverly set up Henbury but continued to do work for Regeny using the same working procedures and methods she was already familiar with.

While working on a project for Regncy, Tanya received a nasty gash across her face which required many stitches. She therefore sued Regency for negligence because it was their procedures and methods she was using.

Is Regncy liable for Fan's back injury? Can Henbury be held partially liable for Tanya's injury? Can Henbury avoid liability on the grounds that Tanya is sole shareholder and director of the company? Is it possible that Henbury could be held 100% liable for Tanya's injury and if so, on what grounds?

Top Answer

Regency is liable for Fans back injury since she was still an employee. Henbury is not liable. Yes,... View the full answer

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