Court of Appeal judgment in restrictive covenant case - Guest Services Worldwide Ltd v Shelmerdine [CA] 04.02.20 (Unreported)
The court interpreted a 12-month post-termination restrictive covenant in a shareholders' agreement which prevented "employee shareholders" from engaging in business that would be in competition with the company. On its proper construction, the covenant bound employee shareholders for so long as they were shareholders and for the 12 months after they ceased to be shareholders, even if they had ceased to be employees before that time.Link to judgment
Court decision on restrictive covenants welcomed by businesses (Scottish Legal News 27.02.20)
Category: Company Law Keyword(s): Restrictive covenants; Employment; Shareholders' agreements. Area(s) of law: Employment; Technology and Information; Litigation; Corporate and Commercial Law.
Source:  EWCA Civ 85.