Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[You must cite relevant cases and/or sections of statutes to support your answers] Alex, Edward and Vivian set up a company, True Hair Ltd, which

[You must cite relevant cases and/or sections of statutes to support your answers]

Alex, Edward and Vivian set up a company, True Hair Ltd, which sells wigs and accessories, in Hong Kong in January 2017. Alex, Edward and Vivian own 40%, 20% and 40% of shares of True Hair Ltd. respectively and are the directors of the company. The company hired a manager, Tina, and three sales representatives for selling the products. To protect the interest of the company, employees of True Hair Ltd., including Tina, are required to sign contracts with True Hair Ltd. restricting them from soliciting existing customers of True Hair Ltd. for one year after their resignation. Three months ago, Tina resigned from True Hair Ltd.

Lately, Edward knew that Tina had set up a new company, Real Hair Ltd. One of Edward's friend also informed him that Tina, in the capacity as the sole director of Real Hair Ltd., had contacted True Hair Ltd.'s customers and sold wigs and accessories to them.

Alex recently knew that Vivian has secretly entered into business contracts with True Hair Ltd.'s existing customers and that the business of True Hair Ltd. is declining. Alex is very unhappy about Vivian's secret acts and wants to remove her from the company as director.

Required:

Advise if Tina will be held liable for the breach of her agreement with True Hair Ltd. and her possible liabilities, if any, based on the legal principles of Hong Kong company law.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Express English Legal System

Authors: Emily Finch, Stefan Fafinski

8th Edition

1292295457, 978-1292295459

More Books

Students also viewed these Law questions

Question

What is a slip jacket and how is it used?

Answered: 1 week ago

Question

What does this look like?

Answered: 1 week ago