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Company Law

  • 07-10-2017 5:38pm
    #1
    TroubledTony
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi There,

    I am a director and shareholder in a business which is being run in a manner a no taken in a direction I don't agree with. If I sell up to the other party, can I then establish my own business and compete or does fiduciary duty prohibit me?


Comments

  • #2
    nuac
    Registered Users, Registered Users 2 Posts: 6,769 ✭✭✭nuac


    Mod
    Leaving open for general discussion subject to forum rule against legal advice


  • #3
    brian_t
    Registered Users, Registered Users 2 Posts: 6,790 ✭✭✭brian_t


    Would that not depend on the terms by which you sell to the other partner.


  • #4
    rightytighty
    Registered Users, Registered Users 2 Posts: 434 ✭✭rightytighty


    I don't think you are precluded from trading in competition with your current firm unless there is a term in your current employment contract which states you musn't do so, perhaps for a stated period. I took Company law last year and can remember cases where such terms were enforced by the courts, but not any operation of common law or statute that precludes you otherwise.


  • #5
    hullaballoo
    Administrators, Entertainment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 18,774 Admin ✭✭✭✭✭hullaballoo


    The OP actually seems to have a better understanding of the relevant area than most.

    If you trade in competition with the company, you cannot do so by benefiting from your involvement with the company because as you rightly point out, you have a very onerous duty as a fiduciary of the company. Even if/when you resign, certain elements of that duty carry over.

    If you want to find out exactly what you can/cannot do, find a soliticor with an established company law practice to guide you as to the best way to cut ties and establish a competitor business.


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