Apologies for not getting back to you sooner, I experienced some temporary connection issues and could not get back on the site until now. All appears to be resolved now so I can continue dealing with your query.
You will potentially be restricted in two separate ways – under your fiduciary duties as a director and under any restrictive covenants in your contract.
There is a principle in law known as ‘fiduciary duties’. These are implied duties that one person owes to another where a specific relationship of trust and confidence exists.
Under equity, directors owe fiduciary duties to their companies under the Companies Act 2006. These duties can be summarised as follows:
· No conflict – you must not place yourself in a position where your own interests conflict with those of the other party or where there is a real possibility that this will happen.
· No profit - you must not profit from your position at the expense of the other party.
· Undivided loyalty - you must not place yourself in a position where your duty to another customer conflicts with your duty to the other party.
· Confidentiality - you must use or disclose information obtained in confidence from the other party for their benefit only.
The fiduciary duties only last whilst there is an ongoing relationship between the parties so once this relationship has terminated, the duties will no longer apply. Instead, if one party wishes to continue imposing some restrictions on the other, they must rely on specific restrictive covenants that are included in a written contract between the parties.
If there are no restrictive covenants in your contract that specifically deal with this situation then as long as you do not breach the fiduciary duties, once you leave you would be allowed to do as you have proposed.
I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you