Document background
The Non Compete Clause In Shareholders Agreement is a crucial component of shareholder arrangements in Swiss corporate governance, typically implemented when companies seek to protect their legitimate business interests from competition by their shareholders. This document is particularly relevant in scenarios involving closely-held companies, startups, or businesses with significant intellectual property or trade secrets. Under Swiss law, such clauses must be carefully drafted to balance the company's protective interests with the constitutional right to economic freedom. The agreement typically includes specific temporal and geographical limitations as required by Swiss law, detailed scope of restricted activities, and appropriate consideration mechanisms. It's essential for companies with multiple shareholders, especially those with access to sensitive business information or strategic plans.
