The entry of a new investor or strategic partner is a significant event in the life of a company, and often marks an important stage in its growth. But as always, a great opportunity also harbors a tangible danger, which must be identified in advance and avoided. Allocating shares to an investor or new partner in the company can lead to the company's owners finding themselves 'diluted', meaning, holding a smaller portion of...
We are all familiar with this clause, commonly known as a 'non-compete clause', which is usually 'hidden' somewhere in the latter part of every employment contract, typically adjacent to clauses regarding confidentiality and general provisions. This clause most commonly includes a prohibition on the employee, usually for a period of 12 months after the termination of their employment, from 'competing' with their employer, and in its accepted wording...
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