Norwell, MA asked in Employment Law for Florida

Q: I have a family business, filed in Florida. We are parting ways with a 33% shareholder, can he go work for a competito

He was gifted 33% of the business, he is resigning, is their case law to support he could not work for a competitor as long as he owns a third of the business?

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1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Freeeport, FL
  • Licensed in Florida

A: You are going to have to do your own legal research, but (assuming it's a partnership or LLC and not a corporation), a good argument can be made that any work he does in the same type of business is work done for the business and therefore profits should be paid to the business.

In any event, if shares (of a corporation) are to be transferred to the company or to the other owner(s), you should ask him to sign a non-competition clause.

Bruce Alexander Minnick agrees with this answer

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