was created, namely the Companies Act 1862 (UK). Nevertheless, although it is based solely on statute, business corporations are in fact separate legal entities: for example, §15(1) of the Canada Business Corporations Act states that "[a] corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person." At trial, the judge held that Mr. Kosmopoulos could not recover damages as owner for the assets of the business as they were owned by the company and not him, but that he could recover as insured because of his insurable interest in the building. This ruling was upheld on appeal, with the court noting that as companies could, thanks to recent laws, have a sole shareholder, Macaura could be restricted to cases involving multiple shareholders. The issue before the Court was whether the assets of Mr. Kosmopoulos, as shareholder, were covered by the insurance. Reasons of the court The Court upheld the ruling of the lower courts. First of all, the Court decided that this was not a situation where they should "lift the corporate veil". To reach this conclusion the Court examined the requirements to "lift the veil". Wilson J. explained: The Court decided that in the current case, lifting the veil would unfairly allow the owner to enjoy the benefits of incorporation while avoiding the costs. The court also rejected the owner's argument that he was a bailor (i.e., taking care) of the companies' assets. Since the company still "possessed" the assets, they could not be considered as bailed without "lifting the veil". However, the court found that the owner, as insured, held an insurable interest in the assets—that is, he had enough of a link to the assets to validly insure them (one cannot insure, for example, a building they have nothing to do with). In doing so, the court rejected the Macaura principle that limited an insurable interest to those having legal or equitable title to an asset. Instead, they applied the "factual expectancy test" (another test proposed by the House of Lords in Lucena v. Craufurd, the 1806 case relied on for the Macaura decision). According to this test, in order to insure something and recover for it, one must have "some relation to, or concern in the subject of the insurance, which relation or concern by the happening of the perils insured against may be so affected as to