Gilford Motor Co Ltd v Horne PDF

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Gilford Motor Co Ltd v Horne legal personality...

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(i) Gilford Motor Co Ltd v Horne [1933] Ch 935 Facts: Plaintiff was in the business of selling motors that were assembled by them. Defendant was the managing director in the plaintiff’s company. there was this agreement that in the event that he leaves the company, he will not solicit the customers of the company. Before his contract ended, the director had made an agreement with him, that the defendant would drop from his position and the plaintiff’s company would give him 1500. However, after his leave, he opened up a company selling spare parts for Gilford vehicle with lower price. Legal Principles: The registered office is at the private address of Mr Horne, the directors are his wide and Mr Albert Victor Howard who originally an employee of Gilford Motors. There was a proof that all dealings in the company was control by Mr Horne even though he did not have any

shares in it. He is the boss or the guvnor of that company. The injunctions must go against Mr Horne and also the company, J.M. Home because the company was a mere cloak or sham for the purpose to enable Mr Horne doing this business. If he did the business in his own name, he would breach the convenant against solicitation. This is why even though Mr Horne and the company is a separate entity, the restraining order ought to extend to the company and not only Mr Horne. The court will not allow the concept of separate personality to be used as an instrument to perpetuate fraud or to avoid legal/contractual obligations. If it happens, the court will lift the veil of the company...