- Original Poster
- #1
Good Afternoon All,
I wonder if anyone has had a similar issue to me or any advice would very much be appreciated. I thank you all in advance.
I was an Operation Director of a company (less than 10% shareholding), so classed as an employee. I went off sick January 2023, as i had several health problems (some are still ongoing). I then resigned from my position at the beginning of April 2023 as there was no way i could go back to full time employment in that situation, so it was unfair on myself and unfair on the company as they were holding my position and desperately needed to fill my position. I was doing 50-60 hours a week, covering several people jobs, taking more and more on my shoulders (this directly lead to some of my health issues).
Obviously i couldn't live on fresh air and had around about 12 months worth of savings to get me through the short term. So i set up my own Ltd company, in the exact same industry but rather than directly manufacturing the goods in house (like my previous company) i outsource everything and make a small margin on each order. Its just me working from home, using my industry knowledge from the kitchen table. Its a far cry from effectively running a full manufacturing outfit with lots of employees, factory, machines etc. I am just about scraping by, whilst i try and build the business up but it allows me a lot better work life balance and to go to many doctor/hospital appointments and to spend more time with my little girl.
However, unfortunately my previous company has just called in an insolvency practitioner to wind the company up as its been losing money for 6 months or more and is definitely no longer viable, as there is no money for wages, let alone creditors. I worked for this company for nearly 16 years, so it is all very sad. I still have friends who work there and it feels like my 16 years was all for nothing. So that's the back story and i will get to the point of my question!! In my contract it states the usual clauses of not contacting any of my previous companies customers, suppliers etc for a period of 12 months. The 12 months will be up on the 6th April this year 2024. I haven't poached or taken any of my previous companies customers, all my customers are completely new that i have built up. I also have not used any of their suppliers, the suppliers i have used are all new ones in the same industry. I still speak to several customers from my previous company as some of them go to the same gym, golf club and even pub that i frequent and i have always told them that i can't deal with them until after April. However, quite a few of them are now panicking as they can no longer be supplied by my previous company (they have literally just been informed this week). They are now pressuring me into supplying them, as in most cases i can actually provide cheaper good at a better quality as well! (part of the reason my old company had failed as it has not moved with the times)
So....... where do i legally stand on this? As my previous company is now no longer manufacturing or supplying customers, the insolvency practitioner is making the staff redundant, collecting creditors and will be selling off assets in due course etc etc. As the company is no longer trading, does my contract become null and void and i am able to supply my old customers now? I won't lie, it will certainly be a very welcome boost to my business by collecting these "new" customers but it would also be heartbreaking seeing them sourcing goods from elsewhere when i have built the relationships with some of them for 15 years. As above, i also seen them out and about in the community. So i would love to strike whilst the iron is hot!
I know some people would have just ignored the contract in the first place (i have seen it with loads of our suppliers sales people who have left jobs with one supplier and have turned up out our factory the following week selling for someone else. They all had similar clauses an just ignored them.). The main thing that makes me nervous is that the managing director can be extremely difficult to deal with and has and is always threatening to sue someone (including former employees). He is basically an old school bully, who often rode roughshod through our HR policies, H&S etc etc and it was a nightmare for my and fellow directors. So, i have no hesitation that if he finds out i have supplied "his" customers he would take legal action but i am not sure he personally can and his company is in liquidation???
Sorry for the lengthy post i was just trying to give the best overview i could. I would love to hear other peoples thoughts, similar examples and most importantly some advice.
Thank you ever so much.
I wonder if anyone has had a similar issue to me or any advice would very much be appreciated. I thank you all in advance.
I was an Operation Director of a company (less than 10% shareholding), so classed as an employee. I went off sick January 2023, as i had several health problems (some are still ongoing). I then resigned from my position at the beginning of April 2023 as there was no way i could go back to full time employment in that situation, so it was unfair on myself and unfair on the company as they were holding my position and desperately needed to fill my position. I was doing 50-60 hours a week, covering several people jobs, taking more and more on my shoulders (this directly lead to some of my health issues).
Obviously i couldn't live on fresh air and had around about 12 months worth of savings to get me through the short term. So i set up my own Ltd company, in the exact same industry but rather than directly manufacturing the goods in house (like my previous company) i outsource everything and make a small margin on each order. Its just me working from home, using my industry knowledge from the kitchen table. Its a far cry from effectively running a full manufacturing outfit with lots of employees, factory, machines etc. I am just about scraping by, whilst i try and build the business up but it allows me a lot better work life balance and to go to many doctor/hospital appointments and to spend more time with my little girl.
However, unfortunately my previous company has just called in an insolvency practitioner to wind the company up as its been losing money for 6 months or more and is definitely no longer viable, as there is no money for wages, let alone creditors. I worked for this company for nearly 16 years, so it is all very sad. I still have friends who work there and it feels like my 16 years was all for nothing. So that's the back story and i will get to the point of my question!! In my contract it states the usual clauses of not contacting any of my previous companies customers, suppliers etc for a period of 12 months. The 12 months will be up on the 6th April this year 2024. I haven't poached or taken any of my previous companies customers, all my customers are completely new that i have built up. I also have not used any of their suppliers, the suppliers i have used are all new ones in the same industry. I still speak to several customers from my previous company as some of them go to the same gym, golf club and even pub that i frequent and i have always told them that i can't deal with them until after April. However, quite a few of them are now panicking as they can no longer be supplied by my previous company (they have literally just been informed this week). They are now pressuring me into supplying them, as in most cases i can actually provide cheaper good at a better quality as well! (part of the reason my old company had failed as it has not moved with the times)
So....... where do i legally stand on this? As my previous company is now no longer manufacturing or supplying customers, the insolvency practitioner is making the staff redundant, collecting creditors and will be selling off assets in due course etc etc. As the company is no longer trading, does my contract become null and void and i am able to supply my old customers now? I won't lie, it will certainly be a very welcome boost to my business by collecting these "new" customers but it would also be heartbreaking seeing them sourcing goods from elsewhere when i have built the relationships with some of them for 15 years. As above, i also seen them out and about in the community. So i would love to strike whilst the iron is hot!
I know some people would have just ignored the contract in the first place (i have seen it with loads of our suppliers sales people who have left jobs with one supplier and have turned up out our factory the following week selling for someone else. They all had similar clauses an just ignored them.). The main thing that makes me nervous is that the managing director can be extremely difficult to deal with and has and is always threatening to sue someone (including former employees). He is basically an old school bully, who often rode roughshod through our HR policies, H&S etc etc and it was a nightmare for my and fellow directors. So, i have no hesitation that if he finds out i have supplied "his" customers he would take legal action but i am not sure he personally can and his company is in liquidation???
Sorry for the lengthy post i was just trying to give the best overview i could. I would love to hear other peoples thoughts, similar examples and most importantly some advice.
Thank you ever so much.
