Question

case study A was a managing director of the company. his appointment condition was that he shall not entice the customer of the company during his employment or afterwards. his employment was terminated and after sometimes he formed a company to carry his own business that enticed the customer. he wanted to see the separate entity protection, that it is the company not him who enticing the customer. decide if he and his company are one and the same​

Answer 1

Answer:

case study A was a managing director of the company. his appointment condition was that he shall not entice the customer of the company during his employment or afterwards. his employment was terminated and after sometimes he formed a company to carry his own business that enticed the customer. he wanted to see the separate entity protection, that it is the company not him who enticing the customer. decide if he and his company are one and the same

Explanation:

case study A was a managing director of the company. his appointment condition was that he shall not entice the customer of the company during his employment or afterwards. his employment was terminated and after sometimes he formed a company to carry his own business that enticed the customer. he wanted to see the separate entity protection, that it is the company not him who enticing the customer. decide if he and his company are one and the same

Answer 2

Answer:

This is an example of lifting of the corporate veil. Yes, he and his

company are one and the same as the company is formed for indulging in

improper conduct or fraud.

Explanation:

In the case of Gilford Motor Co. Ltd. vs. Horne, Mr. Horne was an exemployee of the company. He was under an agreement with the company

not to solicit its customers. He fraudulently formed a company to carry on a

similar business which he was not allowed to do in his personal capacity as

per his agreement with the Company. His Company was held to be a mere

sham or hoax formed for the sole purpose of allowing him to commit a

breach of the agreement which he had entered into with his former

employer.