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Director banned from revealing information about his former company

Posted: 14th April 2011   In: Dispute Resolution, Corporate Commercial

A director has been banned from revealing confidential information that could damage his former company.

The issue arose after the director became embroiled in a dispute with his company that involved court action. The judge found in favour of the company and referred the director as having an "attitude of blatant disregard for the truth, for the accuracy of public records, for the validity of company resolutions and for the rights of his fellow director".

The director resigned shortly after that judgment but his dispute with the company continued.

The company manufactured golf products and was involved in a patent dispute with another manufacturer.

The director threatened to offer his services to the other manufacturer during the court proceedings. This could involve him revealing confidential information.

His former company sought a perpetual injunction restraining him from revealing such confidential information.

The court granted the injunction after deciding that the director had shown a blatant disregard for the rights of his former company and had revealed an intention to damage and destroy it.

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