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Which one should be sued?

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Syedwaseem Raja109

3 Points Posted on 08 October 2020

A person is working as an active director in company A and at the same time he joins the company B of the same business. can company A sue only the director or company B as well?

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Quick Summary

This discussion examines whether Company A can sue an active director who has also joined a competing Company B. The consensus is that Company A can sue the director, especially if their employment agreement restricted them from working elsewhere. However, suing Company B is only possible if they acted in bad faith; if Company B acted in good faith, they generally cannot be sued.

Taruna punjabii

9 Points Posted on 08 October 2020

While entering into an employment agreement if the company A provides some conditions regarding working at a different organization or bars the particular person from working anywhere else and inspite this the person work at a different organization company À can sue such person and cannot sue the company B Provided company B acted in good faith