Research on the Non-compete Obligation of Directors in China' s Company Law

摘要

Non-compete is an important obligation of directors, and also is an important manifestation of directors' loyalty obligations. Directors are generally involved in the company's management, so they are familiar with company's trade secrets, major business decisions, investment and other insider information. If the law allow the directors doing business in the range of company's trading profit for themselves or a third party, the directors may use company secrets or business relationship for their own personal gain, and then damage the interests of the company and shareholders. China's current Company Law has set forth non-compete obligation of directors, but some provisions are abstract. This paper attempts to analyze our directors' non-compete obligations in order to point out legislative defects, and put forward suggestions for improvement.