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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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Hi, I am the director of a LTD company who is bound by a

Customer Question

Hi,

I am the director of a LTD company who is bound by a contract with another LTD to keep confidential information about a software development project we created for them.

I have decided to leave my current employment and set up a new company serving the same market as the original buyer of the software application.

The former customer is saying that it would be impossible for me, personally, to create another piece of software aimed at the same marketed without breaching those secrecy clauses. Something I dont agree with.

Note, the agreement exists between two LTD companies. I have never made any personal guarantees.

Can I be prevented from using the skill I have developed in a new venture.

Thanks
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Do you have an employment contract with the existing company? If so does it have any restrictive covenants?

You cannot flagrantly copy confidential information, however to the extent that you can memorise and reproduce it yourself then that would not be prevented.

I look forward to hearing from you regarding the restrictive covenants.

Kind regards

AJ
Customer: replied 3 years ago.

Hi, let me clarify.


 


I am the sole director of the supplying company.


 


The customer, another LTD, is saying I cant as an individual person go and use the skill and experience gained in the initial supply elsewhere.


 


I am under no employment contract as I am the only director/shareholder of the supplying company.


 


There are no restrictive covenants in the agreement between my LTD and LTD making the claim, just a secrecy clause.


 


So I suppose the question is, what personal restrictions can be placed on me where the only a secrecy clause exists on a company I am the director of.


 


Thanks


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

That is slightly different. You would be the guiding figure of the company and they would have an argument to say that the restrictions apply to you as well.

Does it say anywhere in the confidentiality agreement that it extends to key personnel?

Kind regards

AJ

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