Concerning the tied-in clause...
This is what my solicitor had told me previously:
"I note that the Client wishes for you to continue working for them; however, as you know clause 12 of your contract states that you must not work for the Client for a period of 6 months where “such supply of services would be in competition with the services provided to the Client by the Company.” Given the wording of this clause, if having given notice of termination to Veritas, you continue to work for the Client there is a risk that the company or any administrator or liquidator appointed to manage the company, might take action against you for the recovery of damages for breach of contract; even though the company owes you money. This is because the administrator or liquidator appointed has a duty to act in the best interests of the company and its Creditors and may choose to sue you as they may only have to pay you a few pence in the pound you are owed, but see the amount paid to you by the Client as an asset, which belongs to the company and therefore the companies’ creditors as a group.
"I would however note that if Veritas is put into liquidation at a future date, they will be deemed to have ceased trading. After the order has been given for the company to be wound up, it would appear from the wording of clause 12 that you would then be able to recommence work for the Client as your services in these circumstances would not be “in competition with the services provided to the Client by the Company.” If they are not trading, it is unlikely that it could be construed that you are competing with them."
This is what my solicitor had told me previously:
"I note that the Client wishes for you to continue working for them; however, as you know clause 12 of your contract states that you must not work for the Client for a period of 6 months where “such supply of services would be in competition with the services provided to the Client by the Company.” Given the wording of this clause, if having given notice of termination to Veritas, you continue to work for the Client there is a risk that the company or any administrator or liquidator appointed to manage the company, might take action against you for the recovery of damages for breach of contract; even though the company owes you money. This is because the administrator or liquidator appointed has a duty to act in the best interests of the company and its Creditors and may choose to sue you as they may only have to pay you a few pence in the pound you are owed, but see the amount paid to you by the Client as an asset, which belongs to the company and therefore the companies’ creditors as a group.
"I would however note that if Veritas is put into liquidation at a future date, they will be deemed to have ceased trading. After the order has been given for the company to be wound up, it would appear from the wording of clause 12 that you would then be able to recommence work for the Client as your services in these circumstances would not be “in competition with the services provided to the Client by the Company.” If they are not trading, it is unlikely that it could be construed that you are competing with them."
Comment