grace is the manafing director of fashion Ltd. Aclause in her employment contract states that she won't dealwith customers of Fashion Ltd on leaving the employment of that company. some year 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 formerly dealt with at Fashion Ltd.

Q1. Advise Fashion Ltd as to the legal grounds it can rely on to take legal action to prevent the actions of Grace.

Q2.Assume the directors of two of Us Pty Ltd wish to expand their fashion business, to mask fashionable face masks due to the coronavirus pandemic, but the company is short of funds. Advise whether the company cna isssue a disclosure document to the public an raise funds? If not, explain why not with reference to the Corporations Act.

Q3 , assume the fundraising by Two of US Pty Ltd was unsuccessful. The directors, Grace and Jones, however, are determined to go ahead with their new business plan to manufacture and sell a big range of fashionable face masks. they opened a new factory to do so. they used up all of the company's funds. Very shortly thereafter,a successful vaccine for the coronavirus was dicovered. As a result, the demand for face masks no longer exists. Sales have dropped sharple and Two of US Pty Ltd is now trading unprofitably . the company now has difficulty in paying its debts and is falling behhind in its tac payments to th Australian Taxation Office.

Jones, as a director, is concerned about the increasing company debts and th difficulties in the company's cash flow to make timely payments.

You are an accountant, Jones consults you for advice on whether he can be personally liable, in these circumstances, for the company's debts jjunder the corportions act.

Advise Jones with legal reasons for the advice give.

Q4, Assume a debtor. a supplier of cloth, has issued a statutory demand to Two of Us Pty Ltd for the non-payment of a $20000 debt.

Explain, with reference to he Corporation Act, the legal options available to the company in responding to the statutory demand. What are the legal consequences of ignoring the statutory demand