Depends how the agreement is drafted. Non-competes and non-solicits can be drafted VERY broadly or VERY narrowly. When they prohibit a more narrow band of activities it's more likely that they're going to be complied with and enforceable in event of a breach. A non-solicit that prohibited another entity from advertising to the public would be unusually broad and tough to enforce. Contact us at www.parrbusinesslaw.com/contact for more information!
Usually. Some shareholders' agreements deal with commercial arrangements where non-competes/non-solicits aren't relevant (e.g. an investment holding company). But for most operating companies that are held by multiple shareholders, it's in the best interest of the company to limit the ability of shareholders to compete with the OpCo or solicit its employees/contractors. Non-competes / non-solicits in a shareholders' agreement are more enforceable than those found in employee agreements since there's not a power imbalance. For more info reach out directly: www.parrbusinesslaw.com/contact
Could a non-competition clause (or contract) be used between an entrepreneur + a potential investor? (i.e. say an entrepreneur with an invention or innovative business concept wants to approach an investor. . . yet wants to ensure the investor won’t think about stealing the business plan + initiating it without the entrepreneur - - could such a clause or contract help protect the entrepreneur? (this could be with or without a non-disclosure clause/agreement)
Yes. Work with a good lawyer who knows the ins and outs of drafting these things. Market practices and what the courts will and will not enforce vary from jurisdiction to jurisdiction. Good luck and if you're in British Columbia, contact us.
@@parrbusinesslaw thanks Steve. Didn’t know you were in 🇨🇦 My guess is to look up a lawyer who has experience w drafting trade secret contracts - cheers!
