Commentary

121.1 Possible clauses in a shareholders’ agreement

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

121.1 Possible clauses in a shareholders’ agreement

| Commentary

121 Restraint of trade clauses

121.1 Possible clauses in a shareholders’ agreement

Where one shareholder leaves the company and the business continues, the remaining participants may be keen to prevent the leaver from taking advantage of the knowledge and contacts he may have obtained during his membership of the venture by including a clause preventing the leaver from setting up in competition with the company’s business. Such a clause will typically contain a number of separate components. The retiring partner will usually agree not to:

  1. 121.1.1

        carry on a business in competition with the company business within a specified

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