One issue that needs to be clarified in the agreement is when and how a shareholder can compete with the company during its participation in the company or after its participation in the company. A clear non-competition clause in a shareholders` pact can remove potential uncertainties and ambiguities. The development of an enforceable non-compete clause can be a complex part of the shareholders` pact. At the time of development, it is customary for shareholders to be on good terms with each other. At the time, there was an attempt to impose itself, which is often not the case yet. A shareholder contract is a complement to the company`s by-law and generally governs the rights of shareholders as well as the management and operating policy of the company. There is no legal obligation to have a shareholders` pact. However, if he is not a man, shareholders in private companies are more likely to find themselves in trouble and increase the potential of litigation because of the lack of clarity of commitments. Although each agreement has the company as a party, the company itself is not really able to enforce any right. It is really a question of where investors and other shareholders personally claim rights against the other party. In this regard, the Court considered several factors in maintaining the non-compete clause: if the shareholders of your company have included a non-compete clause in the shareholders` pact or are considering preventing shareholders from competing with the company after the sale of their shares, careful drafting is required to ensure that the clause is appropriate and therefore applicable in the current circumstances.
The provisions of the non-compete clauses are one of the key themes that shareholders should consider when developing a shareholder contract. The strategy for implementing these provisions depends on the circumstances and circumstances of each case. The same applies to avoid such provisions when a party is represented and wishes to appear. If you are the party that wants to enforce the agreement against an outgoing partner, lessor or shareholder, you generally cannot violate the underlying agreement yourself. It is argued that once the shareholder, LLC or company refuses the agreement, the outgoing shareholder`s obligations end. A non-compete clause in a shareholders` pact is a clause that prevents shareholders from competing with the company while they are working or participating in it, and also for a short period after the shareholder has left the company. Most shareholders of a company will have a detailed knowledge of the company`s intellectual property, such as trade secrets, business plans, relationships with key stakeholders and access to customer/client lists.