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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11132
Experience:  30 years as a practising solicitor.
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If a small limited company is liquidated, what happens to the

Resolved Question:

If a small limited company is liquidated, what happens to the shareholders agreement?
I'm questioning from the perspective that the SA includes a non-compete clause which I would think could not be enforced - but in three months time if I have opportunity set up a new company in the same sector I don't want the old business partner being able to claim anything against me (not that he's got the money to anyway).
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
The shareholders agreement assumes there is a company. There isn't. The restraint of trade clauses were to protect th company. There is no longer a company to protect. The shareholders agreement is unenforceable to that extent.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.

Thanks JGM,

Just to confirm, when you use the term "restrain of trade" can I assume this is the same as what's being called "Protection of The Business: Restrictive Covenents" in this SA?

Expert:  JGM replied 2 years ago.
Yes, that is what I mean.
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