Advise him citing all relevant legal authority

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Question 2

Mark worked as route manager for United Trucks Pty Ltd in Queensland from 2002-08. A term of his contract was that if he should leave the company, he could not engage in the trucking industry in Queensland for five years. In 2010 he registered a company called Sunshine Trucks Pty Ltd. Mark owns 95% of the shares. The other 5% are owned by his brother, Greg, whom he elected as sole director and CEO. All contracts for haulage of goods are signed by Greg in the name of Sunshine Trucks Pty Ltd. The company operates in north Queensland.
Greg also signed a contract on behalf of the company, taking out a loan of $ 2 million from Grasping Bank in 2010 as start-up capital. The company did well during 2010, 2011 and the first half of 2012, but in July 2012 was not able to repay a loan instalment of $ 100 000 owing to Grasping Bank Ltd.

Mark comes to you for advice after receiving two letters: One from United Trucks Pty Ltd requiring him to cease the operations of Sunshine Trucks Ltd in Queensland, the other from Grasping Bank Ltd threatening to sue him for $ 100 000. Advise him, citing all relevant legal authority.

Reference no: EM13172074

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