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JGM, Solicitor
Category: Law
Satisfied Customers: 12088
Experience:  30 years as a practising solicitor.
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If a small limited company is liquidated, what happens to the

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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).
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.
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Customer: replied 3 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?

Yes, that is what I mean.
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