Non-competition applies in general to all key personnel. Before drafting a non-competition clause, it is frequently necessary to go through the key personnel’s contacts and commitments so that they can, as needed, be included in the shareholder agreement. Shareholder non-competition typically continues for two years after the termination of the agreement (bad leaver) and ends immediately in the case of an acceptable reason for leaving (good leaver).
With regard to non-competition of investors, the only acceptable condition is that an investor may not sit on the board of directors of a competing company. Non-competition clauses restricting the investments or other activities of an investor should not even be suggested – these will not be accepted.