The pizza shop is doing well and making a profit. In fact, the pizza shop is doing so well that they need to hire a pizza maker, Fabio. Fabio’s employment contract contains a non-competition clause which is designed to stop him from competing with “Dough Magic” if he ever leaves. Fabio does decide to leave Dough Magic, but he registers a company, Kings of Dough Pty Ltd, which he uses to run a competing pizza shop which trades as “Kings of Dough”. Fabio is the sole director and shareholder of the company. Giovanni, Leanne and Mick learn about “Kings of Dough” and they want to know whether they can take any legal action against Fabio and/or Kings of Dough Pty Ltd. They have heard that companies have separate legal identity, so they are confused about whether they can sue for breach of contract and have the contract enforced. Giovanni, Leanne and Mick make another appointment with your firm for a consultation. To help prepare for the meeting, your supervisor, Jonathan, wants you to write a report for him. In Part B you must write a report which: 4 1. identifies one case law authority which relates to the separate legal personality principle in company law. 2. explains the separate legal personality principle and the concept of the corporate veil. 3. explains the respective role of shareholders and directors of a company. 4. advises whether the corporate veil can be lifted in this circumstance, and what it means for the corporate veil to be lifted. You must identify and apply one case law authority on point.

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