The Non-Compete Clause Shareholders Agreement is essential when companies need to protect their business interests from competition by their shareholders. Commonly used in Singapore for privately-held companies, particularly during shareholder exits or company sales, this agreement defines competitive restrictions while adhering to Singapore's legal requirements for reasonable restraints of trade. It typically includes detailed provisions on restricted activities, duration, geographic scope, and enforcement mechanisms, offering protection while maintaining compliance with Singapore's Competition Act and common law principles.
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Key Requirements PROMPT example:
Non Compete Clause Shareholders Agreement
"Need a Non Compete Clause Shareholders Agreement for our Singapore-based technology startup to restrict tHRee departing shareholders from competing in the Southeast Asian market for 24 months after their exit in March 2025."
1. Parties: Identification of all shareholders and the company
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used tHRoughout the agreement
4. Scope of Non-Compete: Detailed description of prohibited activities
5. Duration: Time period for non-compete obligations
6. Geographic Scope: Territorial limitations of the non-compete
7. Remedies for Breach: Consequences and enforcement mechanisms
1. Consideration: Details of any additional consideration for non-compete obligations when specific consideration is provided
2. Carve-outs: Specific exceptions to non-compete obligations when certain activities or circumstances need to be excluded
3. Non-solicitation Provisions: Additional restrictions on soliciting employees or customers when broader protection beyond non-compete is needed
1. Schedule of Shareholders: List of all shareholders and their shareholdings
2. Schedule of Restricted Activities: Detailed list of specific prohibited activities
3. Schedule of Restricted Territories: Detailed list of geographic areas covered
4. Schedule of Competitors: List of specific competing entities if applicable
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