3 out of 5 started their own company.?

Question

3 directors out of five started their own company while still managing the old one, although we(remaining 2) said that we will no operate together once we have completed current works, but during this time they started their own company and started doing bussiness of same nature while looking after the works remaining for which they charged to the old company from their new one, used same tel/ fax numbers, what can we do about this, we also asked goodwill but they said goodwill for what, do we have case for this.

Answer 1

You are right to be concerned. Contact companies house for advice before going to a solicitor. They will probably use a restaining order on these three unwise souls - there are rules which govern the behaviour of company directors and they appear to have broken them. Also check out the .gov.org website under employment law - i think they may well have breached most of that too.

Answer 2

Contact a lawyer as soon as possible. I would go outside of house counsel. House counsel could have a conflict of interest if they have done ANYTHING for the other directors in starting their new company. If I were in the same situation, I wouldn't waste any time before speaking to a lawyer who specializes in corporate law. I'm pretty sure that by using the resources of one company to establish a competing company, without the written consent of all directors, they have violated laws.

Good Luck.

Answer 3

If they used any of the old company's resources (client lists, telephone numbers, etc.) then you have a very strong case. Get a lawyer and go to court immediately.