Albi Ltd leases a supermarket premises in a shopping centre owned by Eastfield Ltd. In every Eastfield lease, it is provided that the tenant cannot transfer the lease unless the person to whom the lease is transferred is a company wholly owned by the tenant. Albi Ltd wants to transfer its lease. To get around the restriction in its lease from Eastfield Ltd, it intends to set up a company wholly owned by itself and transfer the lease. Immediately after the transfer, it plans to sell the shares in the new company to an outsider, thereby avoiding the operation of the prohibition on the transfer of the lease.

Advice Eastfield Ltd as to whether Albi Ltd would be breaching its lease if it goes through with this plan.

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