UK Ruling Shows That Clarity Is Key In Restrictive Covenants

By Lois Horne and Hannah Leonard (March 25, 2020, 1:01 PM EDT) -- In the case of Guest Services Worldwide Limited v. David Shelmerdine,[1] the U.K. Court of Appeal considered whether noncompete restrictive covenants in a shareholders' agreement applying to employee shareholders bound a shareholder, Shelmerdine, after he ceased providing consultancy services to the company, and whether the restrictions were an unreasonable restraint of trade and therefore unenforceable....

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