PRACTICE NOTES
This Practice Note
This Practice Note explores the legal considerations triggered by a co-ordinated departure, where multiple partners of the same partnership or members of the same LLP leave to establish their own venture or join a rival of the partnership or LLP. It assesses potential unlawful behaviour and the scope of duties owed by partners and members under the Partnership Act 1890 (PA 1890), the Limited Liability Partnerships Act 2000 and the default rules in the Limited Liability Partnerships Regulations 2001, SI 2001/1090 (LLPR 2001). The significance of express terms in partnership deeds and LLP agreements is emphasised. Practical considerations are outlined, together with guidance on garden leave and post-termination restraints addressing competition, solicitation or the poaching of clients and/or other employees. Finally, remedies are reviewed, including springboard relief.
Comparable issues arise when analysing a team move from an employer. For further
Employment