From Partners to Rivals: Protecting Your Company using restrictive covenants
If a founders or shareholders or senior managers relationship sours, things can go wrong very quickly causing the company distraction and financial losses. This is compounded if on exit the departing individual seeks to poach clients or staff or seeks to work with a competitor or sets up in direct competition with you. The best way is to deter this behaviour and have a means to take action against them if they choose this route.