Protecting Your Business is Vital, says Claire Reddington – Commercial Litigation Solicitor…

It goes without saying that things are tough in business thanks to low consumer confidence, unemployment on the rise and the much feared cuts now starting to take hold. All too often, business owners can focus on the external challenges but it’s vitally important to take the necessary steps to protect the business itself. Here, we take you through the dos and don’ts!

Firstly, always ensure that the correct basic agreement is in place for your type of business; for example a partnership agreement or shareholder’s agreement – as these will provide the basis for protecting the company in the event of a dispute between management or owners.

Next, make sure that all directors and senior managers have entered into appropriate service contracts or contracts of employment as these will provide suitable confidentiality provisions and restrictive covenants. These are essential as they will prevent individuals from causing difficulties if they leave the business.  However, be aware that they should be drafted carefully, so legal advice should be obtained.

Junior employees should also be signed up to a contract of employment placing obligations of confidentiality upon them to ensure that the company’s information is protected and, if appropriate, restrictive covenants can also be included.

Briefings are really important as managers and employees need to be aware of the commercial sensitivity of information which they may be accessing.  Ideally, documents should state they are confidential, or alternatively, employees should have to acknowledge their confidential nature before they are allowed to access them. Information of a highly confidential or sensitive nature should be password protected, and the password changed regularly.  Only those who require access should be provided with the password.

Although client relationships are central to the success of your business, try to control things by making sure that not just one member of staff is the sole contact for your major customers. The business is providing the service, not the individual and it’s likely if they leave then the customer will follow.

Monitor use of computer systems so far as possible but ensure that a suitable policy is in place which allows you to do so.  This should include the monitoring of emails which are sent by staff to personal email addresses with large attachments, monitoring the downloading of information, and volume printing.

Always carry out exit interviews with employees who are leaving this business.  If they plan to compete with you after leaving, they may not reveal this but you may pick up on an ulterior motive!

Ensure that all employees are asked to return all company property in their possession upon the cessation of their employment, including all documents and files.  Employees should also be asked to delete all information stored on any personal computer, including emails which may contain information confidential to the company.  List all items which are returned, and ask for a signed letter of confirmation stating that all company property has been returned, and that all information on personal computers has been irretrievably deleted.

In the event that you learn of a potential breach of restrictive covenant or a breach of confidentiality by an employee, take action immediately by obtaining legal advice. In some circumstances, it may be possible to obtain an injunction preventing an employee from working for a competitor or setting up in competition, or alternatively providing for the return of any confidential information in their possession.  Any delay could be vital to the success of injunctive proceedings.

All of this may sound heavy going but most are simple actions that will protect in the long term.

Testimonials

Read what our clients have to say...

View All

Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.

Ben Armitage

“Very approachable, practical solutions to problems, but most of all very responsive which I personally think is very important because if you need help, you need it quickly, or at least to know someone is looking at it for you”.

Joanne Rowe, Finance Director, Greater Manchester Chamber

“Always able to contact, very approachable, friendly and professional”

Nives Feely, JAM Recruitment

“I believe I have been able to establish a professional working relationship with everyone I have come into contact. Importantly, I sense the relationships which have been established give me the confidence that I can make contact with Davis Blank Furniss at any time and on any matter. I would also like to express my thanks to the very impressive “gatekeepers” who work in reception, not only for making me very welcome, but also for their professionalism”

Bill Pryke, CEO, Chartered Institution of Civil Engineering Surveyors

“Thank you for your efficient and friendly help throughout this process. We have had it easy but your approach has been part of that”.

Robert Amsbury (Conveyancing Client)

“I would like to take this opportunity to thank you personally for the ongoing support and assistance the firm has offered to our parents over the years. I hope also that we may be able to call on you if necessary in the future.”

Valerie Fisher (Probate Client)

“Jo always provides great service, understands our needs and delivers on her promises. Our needs are relatively simple but the complexity arises out of the volume of work and short time frames, Jo always delivers.”

Peter Fernandez, Corporate Director at Royal Bank of Scotland

“A big thank you to all who dealt with my wife’s claim… We would not hesitate to recommend Davis Blank Furniss to anyone that may be in a situation like we have been…”

Anon (Personal Injury client)

“Before putting my case in Kirsty (Morbey)’s capable hands I’ve met a couple of other solicitors. None of them listen to me as intently as Kirsty and showed me as much empathy and understanding as she did. Simultaneously she was able to look at my case from legal perspective, explain all the options and follow each of our meetings with written summary of the discussed matters (in timely manner). Her advice was invaluable and led me to successfully ending the case matter (hopeful for good). I’m forever grateful for he work and would definitely recommend her to anyone looking for reliable, knowledgeable and committed solicitor”.

Anon (Family client)
5 star service

Our Manchester office is rated 5 stars on Google