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Non-solicitation agreement addressed to individual rather than Ltd

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    #11
    Originally posted by aytri View Post
    ? I feel uncomfortable signing something as John Smith rather than MyCo Ltd, considering John Smith has no legal relationship with ClientCo, AgentCo or EndClientCo.
    The fact of the matter is you work for the end client - you, not your company. On this channel we all may join in the groupthink/self delusion that we are businesses but people whose income is at stake - in this case agencies - have to be more down-to-earth.

    Your company is just twenty quids' worth of paper.

    Agencies know full well you can walk away from all of your company obligations by just spending £20 and becoming a new company.

    I was working at an agency in the 1980s and they were demanding named people sign things even then. The agency would walk away from the potential revenue if the contractor cut up rough. Agencies have to have principles otherwise they would just get taken to the cleaners.
    "Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark Twain

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      #12
      Wrong. The law can see past the company and look at the person. It's called piercing the corporate veil. The web page before has exactly what are suggesting as an example.

      en.m.wikipedia.org/wiki/Piercing_the_corporate_veil
      Last edited by northernladuk; 7 July 2016, 22:38.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #13
        Originally posted by Cirrus View Post
        The fact of the matter is you work for the end client - you, not your company. On this channel we all may join in the groupthink/self delusion that we are businesses but people whose income is at stake - in this case agencies - have to be more down-to-earth.

        Your company is just twenty quids' worth of paper.

        Agencies know full well you can walk away from all of your company obligations by just spending £20 and becoming a new company.

        I was working at an agency in the 1980s and they were demanding named people sign things even then. The agency would walk away from the potential revenue if the contractor cut up rough. Agencies have to have principles otherwise they would just get taken to the cleaners.
        There are companies consisting of husband and wife, or two siblings with the same skill set*.

        If one of the named individuals signs the non-solicitation agreement as themselves, then there is nothing legally to stop the wife or other sibling working with the end-client.

        If the non-solicitation agreement is signed as the company and worded properly then no director or employee of that company can work for that end client.

        *These are just the people I've worked alongside and met the other person. Some of them have substituted for one another on-site, while others have helped but stayed off-site.
        "You’re just a bad memory who doesn’t know when to go away" JR

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          #14
          Originally posted by aytri View Post
          . Should I sign it?
          Yes.

          Unless you hate the role and want to be dropped without breaching the contract at your end.

          Forget the legalese discussion.
          The client wants to make sure you don't rip them off (or EndClient doesn't rip them off), and a narrow restrictive covenant is very enforceable. And people buy people which is why they want YOU to sign it not your company.
          See You Next Tuesday

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