Setting up second identical company to run alongside 1st company but as sole director/beneficiary

Setting up second identical company to run...

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I have 2 directors who are now ex relationship partners with 50/50 shareholding in their own LTD company. One of the directors has set up an identical LTD business in their own name to run alongside the 1st shared business. The director of the new company is proactively finding clients for their own business but still dealing with new business and current clients in the first shared company. Everything is still be treated equally in the first company and they are not taking any clients etc from the initial company for their new business.

Are there any issues which the director of the new company could fall foul of in relation to the companies act? Could this be construed as not acting in the best interests of the first business in relation to the Code of Directors duties? 

 

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By johngroganjga
10th Feb 2014 08:06

If both directors are content with what the other is doing there are no issues to worry about.

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