Chapter 20_Companies and Incorporated Associations

Question 6Wellington is the managing director of corporate finance in a merchant bank called Waterloo Limited. A clause in his service agreement states that he won't deal with customers of Waterloo Limited on leaving the employment of that company. Wellington decides to resign from Waterloo Limited and joins a syndicate with 10 friends to take over and operate for themselves a small merchant bank. The takeover is successful and Wellington is appointed finance manager of the revamped company's corporate finance department. He then approaches the customers he formerly dealt with at Waterloo Limited. Advise Waterloo Limited as to the grounds on which it can take legal action to prevent Wellington's actions.

Answer by following IRACstyle

Issue

Rules

Application

Conclusion