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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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An employee working for an enterprise that trades within a

Resolved Question:

An employee working for an enterprise that trades within a university (a charity) has gone and registered this enterprise under their name and address with companies house and has appointed themselves as director. They are still under contract with the university for their work to the enterprise. Can this person be lawful removed from this company? what is the process for this removal?


 


it maybe worth mentioning that the film production unit in question  was with the same name. This was done with no knowledge of the university and was done secretly, it was discovered because someone informed me which prompted me to check. The unit has been running for 4 years and continues to trade through the university.

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

Thank you for your question and welcome

My name is XXXXX XXXXX I will assist you.

Was the employees job title directly related to this enterprise?

Have they just taken the trading name and registered it as a company or have they taken any other assets?

Does the name have any significant goodwill attached to it?

Kind regards

AJ
Customer: replied 3 years ago.

Dear AJ


thank you for getting back to me. The enterprise is called MILE END FILMS the employees title was producer of video content for Mile End Films. So yes directly connected. She registered it under the same name MILE END FILMS ltd. As far as we are aware no other assets have been taken. She is still working under that title.


the name relates to the road on which the university resides and has had a successful 4 years of producing outstanding work. hope this helps.

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

Thank you.

Is Mile End Films used as a trading name by the university?

Has she started trading the company "Mile End Films Limited"?

Kind regards

AJ
Customer: replied 3 years ago.

Yes, Mile End Films is used as a trading name by the university for all work that is produced by Mile End Films.


 


There is no way of knowing if she has started trading the company Mile End Films Ltd. If she has its would be through work that came to the unit and then processed through mile end films ltd. but without an investigation into this there is no way at this point that i can be sure of this.


 


The company was originally registered with companies house as Mile End Films Ltd and due to a misunderstanding was dissolved. On the day it was dissolved, she registered it under her name.

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Based on the information you have provided I can give you the following comments:
1. You have a goodwill and trading history in the name Mile End Films for the purpose of film production;
2. This employee has taken an asset from her employment and registered it as a limited company;
3. If she starts trading in film production under that name, she could potentially be guilty of passing off;
4. "Passing Off" is where one party trades on the back of a reputation of another party's goodwill in order to take an unfair commercial advantage;
5. If she actually starts trading with that name you may be able to obtain an injunction against her and damages.

I would suggest as a starting point you discuss with her what she intends to do with the this limited company? If she says she is going to trade with it, you could pre-empt her and seek an injunction.

I look forward to hearing from you.

Kind regards

AJ
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