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I am a shareholder of a privately held company where I had signed a shareholder agreement which states that I cannot compete for next 2 years globally and no specifics on services and geography in the agreement. I was also not compensated at all. The company and its majority shareholders were conducting business unethically to their own benefit. I had protested to these malpractices before I exited out as board of director / employee. My core competency is Testing Services which is not proprietary and there is no intellectual / patents of the Company which I will be disclosing / competing. My lively hood depends on my ability to deliver services. Can I start another company.
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Wills and Estate Planning Attorney serving Sugar Land, TX
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Law Offices of Kimberly D. Moss, PLLC
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The answer to your question depends on a few things. First, when did you sign the shareholder non-compete agreement? If it was more than two years ago, you should be fine if that was the time period specified in the agreement. As a general rule, non-compete agreements cannot be used to limit you from being able to earn a living, and a court would look at that agreement very critcally. A valid non-compete agreement needs to be reasonable in scope, geography, and time. Without specific limitations in place, it may not be enforceable against you.
Answered on Sep 18th, 2013 at 1:37 AM