QUESTION 2: Magic Marketing Ltd employed Mike Todd as a marketing director. When he joined Magic's Marketing Ltd, Mike signed a restraint of trade contract in terms of which, for a period of three years aer leaving his igb as marketing director, Mike was not allowed to do any of the following: be employed by any competitor of the company, reveal any trade secrets of the company or engage in any business in direct competition with Magic Marketing Ltd's line of business. Mike resigned from his job as marketing director at Magic Marketing Ltd. Within two years of his resignation, Mike incorporated Instant Marketing Solutions (Pty) Ltd, a company which offers similar services to Magics Marketing Ltd. Mike is not employed by Instant Marketing Solutions (Pty) Ltd but his name appears on the securities register (register of existing shareholders) as an 80% shareholder of the new company. A few months after the formation of Instant Marketing Solutions (Pty) Ltd, Magic Marketing Ltd lost two of its major clients to Instant Marketing Solutions (Pty) Ltd. The company is unhappy about this loss of business. Magic Marketing Ltd has confronted Mike to establish whether he is associated with the new company in any way. Other than stating that he is not employed by Instant Marketing Solutions (Pty) Ltd, Mike has refused to make any other comment. Magic Marketing Ltd has now approached you for advice. Give Magic Marketing Ltd a LegaLQpiniQn regarding whether Mike Todd has contravened any law and advise the company on any possible remedy in company law. 10 MARKS (Not more than one page)