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Non-compete clause for 12 months in shareholder agreement upheld

Subject: Limited companies; Competition

Source: British and Irish Legal Information Institute (BAILII)

Guest Services Worldwide Limited v David Shelmerdine [2020] EWCA Civ 85

Court of Appeal (Civil Division) Hearing date: 18th December 2019

The Appellant, Guest Services Worldwide Limited ("GSW") is in the business of producing maps for distribution to the guests of luxury hotels. Revenue is generated from advertising fees paid by businesses in the locality of the hotel in question, which are featured on the particular map. The hotels are situated worldwide and 90-95% of GSW's income stream is generated from overseas. The business was founded by the Respondent, Mr David Shelmerdine. In around 2011, he sold the business to Vicinity Group Limited which subsequently went into administration. GSW acquired the business from the administrators. Mr Shelmerdine was initially retained as an employee. It was Mr Shelmerdine, (amongst others) who visited locations outside the United Kingdom, organised the relevant map and the advertisers, before moving on to another luxury hotel.


[Original text of the case report supplied by BAILII gratefully acknowledged. Crown copyright: contains public sector information licensed under the Open Government Licence v3.0
Legaleze is solely responsible for the above text which is a summary only and the full report should be read.]



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