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Demonstrate a detailed knowledge of an aspect of the law of corporations, demonstrated through the ability to identify and explain the key principles within the area. CO3. Develop clarity of thought, critical analytical reasoning, and problem-solving and communication skills in written context.X has worked as an accountant with ABC Accounting for eight years. The firm is a major accounting firm situated in the central business district of the city of Adelaide. Over this time she was given more and more responsibility and had been promoted twice to more senior positions. This meant that she now had a reasonably large portfolio of clients who she got to know well as she dealt personally and regularly with each. The company is currently undergoing restructuring and X is hopeful of being promoted to the senior position she has been striving for as head of her department. The manager of her department had told her that he was retiring and had hinted strongly that she was a favoured candidate for the job.
Unfortunately when the new head of the department was selected, it was not X. Feeling depressed that all her hard work and excellent skills had been overlooked, X decided to start up her own accounting business. She knew that many of the clients she had dealt with appreciated her efforts and had consistently returned to ABC Accounting to deal personally with her. She planned to inform them of her own new business.
When X began working at ABC Accounting her contract had a clause which stated that if she left their employment, she was not to set up a business in competition with ABC Accounting in the Adelaide central business district for twelve months. X thinks that since that contract is eight years old, this clause has no relevance. She gives notice of her resignation and begins her new business with business premises in the central business district. She now prepares to advertise to the clients she had worked with.
a) Discuss whether ABC Accounting could get an injunction to stop X from doing this? (worth 75% of this assignment)
b) Discuss if and how your answer would differ if X had worked with ABC for only eight months in junior position.
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