RLK acted for a financial services company advising high-net-worth clients, including a number of Premier League footballers. The company was jointly owned by two Directors. Without warning, one Director set up a competing business, seeking a greater financial share while covertly attempting to move clients and their arrangements across to his new firm.
The Director’s actions were carried out in secret, leaving the business at risk of sudden client losses. There were no restrictive covenants in place to provide an immediate contractual defence, which made swift injunctive action essential. The scale of the attempted transfer also required detailed evidence gathering to track client movement and protect the company’s reputation.
RLK argued that the Director’s conduct was a clear breach of fiduciary duties under the Companies Act and case law. By prioritising his personal interests over those of the company, he had acted in bad faith. We pursued urgent injunctive relief to prevent further client loss and sought compensation for the financial harm already caused.
The injunction was successfully obtained, halting the Director’s unlawful activities. The business retained its client base, safeguarded its reputation and recovered part of the financial loss. This decisive action not only protected the company in the short term but also reinforced the importance of fiduciary duties in corporate governance.
This case shows that even without contractual protections, companies are not powerless. Fiduciary principles can hold Directors to account where they act dishonestly or in breach of their responsibilities. At the same time, it highlights the value of robust shareholder agreements and restrictive covenants in preventing internal threats before they arise.
If you are dealing with Director misconduct, breaches of fiduciary duty or internal threats to your business, RLK’s litigation team can provide fast and effective solutions.
Contact us on 0121 450 7800 or enquiries@rlksolicitors.com.
Satish is the Managing Director of RLK Solicitors and one of the firm’s founding members, Satish also Heads up the Dispute Resolution & Litigation Departments. With nearly three decades of experience, he specialises in high-value and complex commercial cases. Clients frequently request him by name, and he is highly recommended for cases that require creative thinking, determination, and a fast-paced approach.
Stay up to date with all our latest news.
We combine creative thinking with an unshakable commitment to your success. We focus our efforts on you.
RLK Solicitors Ltd is registered in England and Wales under company number 7189629 and is authorised and regulated by the Solicitors. Regulation Authority under SRA number 522998.
