Director leaving to set up new company

Discussion in 'Growing and Managing a Business' started by Oxford78, Oct 25, 2012.

  1. Oxford78

    Oxford78
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    Hi everyone, im looking for some advice.

    I have been a director and shareholder at a small company for 3-4 years, i resigned as a director in May (and sold my shares back) and agreed a 6 month notice working as an employee effectively. I intend to set up a new company offering a similar service in a similar area a month or so after the notice period. Are there any legal reasons why i can not do this.
     
  2. Business Attorney

    Business Attorney
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    There may be. You should really spend a small amount of time talking to a lawyer about the specific facts. For example: what was your role, are you going after the same customers, is there any confidential information from the prior business that you might be using in your new business? In addition, the law of the jurisdiction where you are located may affect the outcome.

    I can't imagine that getting a business lawyer to review your situation with you would cost more than a couple of hundred dollars and could save you a lot of trouble and money in the end if you should be going about it a little differently.
     
  3. Oxford78

    Oxford78
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    Thanks for that. I have been trying to read up on the issues. Generally it comes back to restrictive covenants, should these be written in to a director contract or if not specifically previously agreed could they be enforced with out being in a signed document? Totally agree a lawyer will be a port of call.
     

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