attributed to the Institution so if there is no limited liability as a legal precedent many of the investor would be reluctant to acquire equity ownership in the firm and would be wary to have new venture. It is so as company will loss more money than it has creditors and other stakeholders could claim the Answered Change your response to TV 4. Grace is the managing director of Fashion Ltd. A clause in her employment contract states that she won't deal with customers of Fashion Ltd on leaving the employment of that company. Some years late, Grace resigns from the company. Her husband, Jones, set up a company called 'Two of Us Pty Ltd which is also a fashion retailer Grace and Jones are the directors of this company. Grace manages this company and approaches the customers of Fashion Ltd she had formerty dealt with at Fashion Ltd 04 Advise Fashion Ltd as to the legal grounds it can rely on to take legal action to prevent the actions of Grace Unanswered