Legal updates: November 2016

Our monthly round-up of legal cases affecting the accounting profession from designer covenants in post-completion dispute in Millen to dividend payments and directors' duties due to creditors in BTI 2014 LLC, shared parental leave case highlights complexities of rules in Railtrack and executive pay enquiry. By Sophie Brookes and Christopher Davies of Gateley LLP

Case report: designer covenants in court

When the parties to a share sale agreement end up in court post-completion arguing about restrictive covenants, it is usually because the buyer wants to stop the seller from doing certain things that breach the restrictions and could damage the goodwill of the acquired business. In Millen v Karen Millen Fashions Limited & Anor [2016] EWHC 2104, however, it was the seller who applied to the High Court asking for declarations that certain activities she proposed to undertake would not result in a breach.

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