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Advanced Digital Technologies Ltd (ADT) is the manufacturer of database software. It entered a contract with NewWave Networks Pty Ltd (NN), under which ADT was to supply its database software exclusively to NN. The directors of NN subsequently discovered that a wholly owned subsidiary of ADT (named Australian Green Telecommunication Pty Ltd) is selling identical database software to competitors at cheaper prices. It appears the subsidiary was incorporated to enable ADT to avoid the effects of their contract with NN. With reference to case law relating to piercing the corporate veil, provide advice to the directors of NewWave Networks Pty Ltd on what they can do to prevent the subsidiary of Advanced Digital Technologies Ltd from competing with their company. Please also discuss any possible remedies.
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