Donald and Carrie (together "DC") are a married couple that decide to start a business together. Both have been involved in music and entertainment...

Donald and Carrie (together "DC") are a married couple that decide to start a business together.

Both have been involved in music and entertainment with some success in Europe. They now want to

start an entertainment company in Hong Kong to expand their brand in Asia. DC approach you to advise

them on starting their new company.

Initially, Donald and Carrie will be the only shareholders and the only directors of the new

company. You have prepared the relevant documents and have a meeting with DC to discuss their new

company, a private company limited by shares. Donald is concerned about liability and wants to

understand liability as it relates to the new company and its shareholders. During the meeting, DC tell

you that they want the legal name of their new company to be DC United HK ("DCUH"). Additionally, he

tells you that he expects to raise money from investors in Hong Kong and is in the process of putting

together a marketing campaign and hopes to secure 100 investors by the end of the year.

On behalf of DC, but prior to its incorporation, Donald leases a very expensive office in Central

that overlooks Victoria Harbour. Unfortunately, the day after signing the lease agreement DC decide to

get divorced. A few days later, DCUH's incorporation is finalized. With the looming divorce, DC is now

concerned about the lease and what he should do since it seems DCUH will not proceed as planned.