Question
[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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started