O Licence - TM EMPLOYMENT CONTRACT PROBLEM!

Having read that extract I can see where they may be coming from. The TM is an individual ( an entity) as is a limited company. Is your TM the sole director of the company.
I might spend a few quid to get some relevant legal advise on how you might get along at a PI. I can see how the TC is trying to ensure responsibility and liability without the h8nderance of a company involved. Let’s not go exploring too closely why the TM wants to use a company instead of being on the books (have a look and do the IR35 test for the TM) It may lead to the idea its for tax purposes and that’s not flavour of the month.