PROHIBITION OF COMPETITION OF THE DIRECTORS

One issue that can create many problems

Is this an issue that is often overlooked but we can create many problems in the future. Many entrepreneurs have several companies that basically develop more or less the same activity.

Article 230 of the Corporations Act is very clear about:

Article 230. Prohibition of competition.

1. Administrators may not engage, self or others, the same, similar or complementary to the activity that constitutes the corporate purpose, unless authorized by the company, by resolution of the general meeting, to which effect must perform communication under previous article.

2. In the limited liability company any member may request the judge of what established merchant cessation administrator who has broken the previous ban.

3. In the corporation, at the request of any shareholder, the general meeting shall decide on the termination of the directors who are also directors of a competing company.

Namely, can dismiss the administrator, by being a member of another company that is dedicated to the same purpose. It is quite common that an employer has several companies engaged in similar social object. When conflicts begin with a partner, this possibility is one to separation into account, that we can use to our advantage or can be turned against us.

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