A recent court case, The Hedgehog Golf Company v Hauser, has opened up new ground with regard to the extent of ex-directors’ obligations preventing them from revealing information about their former company to a new employer. In the case, an ex-director had been on the verge of revealing confidential information about one of his former company’s products (a patented device known as a Hedgehog – which basically is a series of studs attached to the wheels of a golf trolley enabling golfers to play in wet, muddy conditions). Their former company applied to the High Court to prevent this. Derek Fort, our Commercial Law partner says: "The High Court granted the former employer something unusual called a ‘perpetual injunction’, banning the ex-director from disclosing specified information regarding the product.”
It is well known that this area of the law is quite difficult to be cut and dried about, and confidentiality clauses often difficult to enforce. As an employer or Business Owner you should be aware of the potential problems when a Diector or other senior employee leaves your firm - The case vividly demonstrates that people in this position, on whichever side of a dispute, do need to obtain proper legally qualified advice, before they do anything - ideally these matters should be carefully considered in an employment or service contract.
We can advise your business on all aspects of Directors' Service Contracts or contracts for other senior employees of your business.
Contact Our Commercial Team on 01282 426251