Research On The Obligation Of Non-competition Of Directors

The obligation of non-competition of directors is one of the important characteristicsin the modem company systems; they are defined in Anglo-American law and theContinental law system. With the development of the economy, and the progress of thesociety, the law keeps developing continuously; directors hold the properties of the company,commercial secrets, and information, business activities of directors directly decide thedevelopment and destiny of the company. Therefore, Anglo-American law and theContinental law system have studied and analyzed the system, and gradually strengthenedthe system through legislation. In recent years, Chinese relevant laws also made somecorresponding provisions to director non-competition system. But, the situation of theexecution of the directors' non-competition system is not very effective, there is a lack ofnecessary management flexibility, main area not unity, term is not clear,limits ofcompetition not clear, legal responsibility system is not perfect, all these need to beimproved. In this paper, based on the analysis of the concept of the directors non-competeobligations, combined with Chinese new "law of corporation" the relevant provisions,defined the obligations of director of non-compete, and through to study on the foreigndirectors non-compete system, analyzed director non-compete system problems in China, inthat process, pointed out the legislation shortage of the China's new "law of corporation".According to these disadvantages, the author put forward some suggestion to perfect directornon-competition system.