dolution

Andrew has been the Manager of Computers Pty Ltd, a company which retails computer software and hardware in New South Wales for the past 10 years. Due to his position as Manager of the company, Andrew knew the identity and requirements of the company’s major clients well.

In March 2019, Andrew, decides to retire. As part of his employment contract with Computers Pty Ltd, Andrew had agreed that he would not compete against the company in New South Wales for the next two years. After Andrew left Computers Pty Ltd in March 2019, the company reorganized its business so that its software business was, from 1 July 2019 carried on by its wholly owned subsidiary called Software Pty Ltd. Software Pty Ltd and Computers Pty Ltd have the same directors and management. Software Pty Ltd now operates the retail software and hardware division previously operated by Computers Pty Ltd.

In April 2019, a company named ‘Systems Pty Ltd’ was incorporated by Andrew’s wife Teresa, who was the only shareholder and director of the company. Systems Pty Ltd was involved in the retail business of selling computer software and hardware. Systems Pty Ltd actively solicits business from the customers of Computers Pty Ltd.

Advise Computers Pty Ltd as to whether the company can prevent Systems Pty Ltd from soliciting its customers. Refer to relevant cases to support your answer.

Note*** – a photo of the written answer is most necessary