Beckett Investment Management Group Ltd & Ors v Hall & Ors - restrictive covenants and groups of companies - Court of Appeal 28.6.07
A Mr Hall and a Mr Yadev resigned from their senior positions with a financial services group called Beckett and set up in competition. Under their contracts they were subject to restrictive covenants intended to prevent them from providing financial advice to Beckett group clients for 12 months. The Beckett group tried to enforce the covenants but lost in the High Court. The main reason was that the contracts were expressed to be with the holding company of the group (not with the holding company and its subsdiaries). As a holding company it did not itself deal with clients.