Goodwill from EMPLOYMENT to limited company

Posted by Anonymous PM | on Fri, 12/03/2010 - 09:32 442 1 comment | report

Individual has 30 years service in the police (employed), is now starting a limited company to offer security services. He has substantial contacts built up over many years in the police. He has asked if he can transfer this "goodwill" into the company.

My instant reaction is no, but I need to know why! I have never come across the position of goodwill from an EMPLOYMENT being transferred to a new trade, and I am also sure that this is 'personal goodwill' anyway.

Any pointers would be gratefully received.

Thanks

Comments

Answered your own question

gbuckell | Fri, 12/03/2010 - 10:38 | Permalink

As you rightly said, this must surely be personal goodwill and therefore not saleable. It strikes me that it would be unusual for any goodwill built up as an employee to be anything other than personal. If it was not personal goodwill then chances are that it belongs to the employer and thus walking off with it could lead to legal problems.