Shareholders' Agreements · glossary

Restrictive covenants

The manager's promises for 12 months after she leaves: not to compete in the South West of England or South Wales, and not to approach customers or senior staff. Each promise is separate, so a court can cut one that goes too far. They survive the end of the agreement. Clause 17 · Clause 20.3 · Chapter 9

Explained in Chapter 9, The Manager, of Shareholders' Agreements.

The main page for this term is Restrictive covenant, in Employment Contracts.

How it comes up, in Chapter 9
A leaver takes her knowledge with her, and here that means the customers and the delivery routes. So clause 17 binds her by restrictive covenants, promises that limit what she may do after she leaves. The first is a non-compete.
Read Chapter 9, The Manager →

Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

Related terms

Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Shareholders' Agreements → · All terms A–Z →