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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 97965
Experience:  Lawyer
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I own 50% of an incorporated company. My partner owns the

Customer Question

I own 50% of an incorporated company. My partner owns the other 50%. We have been in business for 1 year and fully operational for 4 months. I am the CEO and he is the COO. We have both signed standard non-disclosure agreements with the company. Here's the problem I am having.
My partner feels it is okay to discuss with his friends what we are doing in the business and to seek advice from them. He feels there is no need to check with me first or to discuss the issues with me first. I have been in the awkward position of meeting a friend of his for the first time and the friend telling me what our priorities should be and where we should be directing our attention, short term and long term.
I feel my partner is violating our relationship as partners and violating his relationship with the company by not honouring the non-disclosure agreement. I have partially addressed the former issue with him as it relates to respecting me, my role in the company, and our relationship. He still feels he can go and talk to people as long as he isn't sharing vital documents with them which he was doing. Please let me know if I'm right in my assessment of the situation or if I'm way off base.
Thank you.
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

What specifically does your nondisclosure agreement say about discussing the business with others?

Customer: replied 1 year ago.
I have attached our NDA.
Customer: replied 1 year ago.
Oops. I sent you 2 copies of the same file. It is pretty standard.
Expert:  Debra replied 1 year ago.

Your partner is breaching the agreement because he is disclosing non-public information and he may not do that unless you consent.

So you are entirely correct.

Let me know if you need further clarification.

Customer: replied 1 year ago.
Thank you.
Expert:  Debra replied 1 year ago.

You are very welcome.

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