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BA217 Company Law- Case Law analysis

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You are to read a text or use other resources in order to write a report on thiscase.Gus signs on to work for Acme Car Co Pty Ltd. As part of his employment he is required to sign a contract promising not to establish a business within 20 kilometres of his now employer’s premises, if he should leave Acme. Gus is a car salesman, and the company sells both new and used cars.Gus has a serious argument with his supervisor in Acme, and he decides to leave the company. Gus’s wife Martha) proposes to register a new companycalled MyCar Co Pty Ltd. She is planning to run the company herself...

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Question Preview:

You are to read a text or use other resources in order to write a report on thiscase.Gus signs on to work for Acme Car Co Pty Ltd. As part of his employment he is required to sign a contract promising not to establish a business within 20 kilometres of his now employer’s premises, if he should leave Acme. Gus is a car salesman, and the company sells both new and used cars.Gus has a serious argument with his supervisor in Acme, and he decides to leave the company. Gus’s wife Martha) proposes to register a new companycalled MyCar Co Pty Ltd. She is planning to run the company herself as the onlydirector and to employ Gus as the only employee. The business of the company is to sell cars to the public from a site very close to Gus’s former company Acme.Required: you are to address the following questionsa. Can Martha establish a company with just one person in control? Explain with reference to company law. Explain how Martha register such a company and then run it. Explain the rules under which the company must operate.b. Can Gus argue that he is not breaching his original contract? What might Acme argue about his going to work for this wife in a similar business?Refer to appropriate case law regarding any arguments that Acme might suggest to stop Gus from working for Martha.c. You need to refer to cases such as Salomon v Salomon, Gilford Motors v Horne, and any other cases you might come across.

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Can Martha establish a company with just one person in control? Explain with reference tocompany law. Explain how Martha registers such a company and then run it. Explain the rules under which the company must operate.Martha can establish a one person company according to the guidelines of Australian Company Law. According to the Australian Company Law a sole trader living in Australia can apply in ASIC (Australian Securities and Investment Commission) to register a one person company with only himself or herself occupying every position in the company. A one person company is not a official term, it is just a tag to describe such companies having single control. However, one can only register a ‘one person company’ when he/she has the intention to register a Pty Ltd company i.e. a Private Limited Company.

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