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Luka Modric and Harry Kane incorporated a company called Modric and Kane Football Co. Ltd. They are the only shareholders having equal share of the company. They are also the Directors of the Company. They were inspired by the players at the World Cup and thought they would start a business to make and distribute footballs first in their local cities and then later around the world. They knew nothing about this business so they hired Scott Boras as the CEO of the company. Mr. Boras has a strong reputation of establishing good relationships with customers. Prior to being hired by Modric and Kane Football Co. Ltd. he worked with Lipman Football Co. Ltd. While at Lipman Football Co. Ltd., Mr. Boras signed a contract with a non-compete clause that said he could not solicit customers away from Lipman if he left the company. As soon as he was hired by Modric and Kane Co. Ltd. he solicited three of Lipman Foortball Co Ltd’s blue chip clients away from them. The Directors of Lipman Foortball Co Ltd have sought your advice. They want to sue Scott Boras and Modric and Kane Football Co. Ltd. but they also want to sue Luka Modric and Harry Kane.
Identify and define the legal principle that allows the Directors of Lipman Foortball Co Ltd to sue Modric and Kane Football Co. Ltd. but not the owners/shareholders Luka Modric and Harry Kane?
The Directors of Lipman are not pleased they really want to sue Luka Modric and Harry Kane separately from the company because they have a lot of money. They ask you if any legal principle would exist that would allow them to do so. Identify and define the legal principle that would allow the Directors of Lipman to sue the shareholders Luka Modric and Harry Kane?
The Directors now know how to sue Luka Modric and Harry Kane and realize they cannot pursue liability against them based on the current facts. However, they are impressed by your advice and want to know if there is any situation where they could have sued Luka Modric and Harry Kane. Identify three instances where they could have sued Luka Modric and Harry Kane, the shareholders of the company. Provide the name of one (1) case for each instance identified.
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