The Student Room Group

company law final year uni

Indira has had a lifelong interest in growing vegetables and she and her friend, Leila, have recently set up a private company limited by shares called Herbivore Ltd (‘Herbivore’). Indira and Leila each own 50 per cent of the shares and they are both directors of Herbivore. Herbivore has bought a small farm to run as a vegetable supply business.

Until she resigned two months ago, Leila was employed by Rivertown Ltd (‘Rivertown’) as Personal Assistant to the Managing Director. Rivertown grows and supplies vegetables to supermarkets and other retailers. Leila’s employment contract with Rivertown contained a restrictive covenant prohibiting Leila from supplying vegetables of any kind to any customer of Rivertown for 12 months after leaving her employment. (You can assume that the covenant is not an unreasonable restraint of trade).

Indira and Leila would like your advice on the legal implications of Herbivore approaching Rivertown’s customers as they are confident that Herbivore’s prices are much lower than Rivertown’s prices.

really struggling with the above

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