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Read the following and answer the questions Lee used a company of which she is the sole shareholder and director, as a front to circumvent
Read the following and answer the questions
Lee used a company of which she is the sole shareholder and director, as a front to circumvent the provisions of a restraint of trade agreement she had signed with a close corporation CC that employed her. Although the company was not a party to the restraint agreement, the court found that the company intentionally assisted her to breach the contract and to engage in competition with the CC that such conduct was unlawful and that it could as such be interdicted.
Source: Le Bergo Fashions CC v Lee SA C
Briefly discuss when the separate existence of a company will be disregarded? Substantiate your answer with case law. Marks
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