Restrictive Covenants

May 24, 2019 by James Woolfenden

Certain restrictions placed on shareholders (particularly Founders) by investors in an Investment Agreement as a condition of making an investment. The common restrictions are a promise not to compete against the business and not to poach a company’s customers, key suppliers and key employees. These restrictions typically continue for as long as the Founder is employed in the business and for a period of time afterwards if the Founder leaves.