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Employment noncompetition is an important system in modern corporate governance. The employment noncompetition in company law has three theoretical bases--sociological,economic,and jurisprudential. The legal judgment of competition is one crucial problem. On the one hand,the identification of competition should be strictly limited within those fields which substantially compete with the former company,but not limited to the registered business scope of the original company; on the other hand,after getting the permit of the company,the conducts of directors who compete in the same industry will be lawful. The provisions of the problem of disgorgement right in company law when the directors violate the non-competition obligation are very brief,the supervisors of company are excluded from the subjects of statutory liabilities in non-competition,and the relevant system of legal liabilities is not adequate. From the perspective of corporate governance,the provisions of non-competition in current labor contract law are too partial to the protection of company's business secrets,which do not help the directors make full use of their human capitals.
Employment noncompetition is an important system in modern corporate governance. The employment noncompetition in company law has three theoretical bases - sociological, economic, and jurisprudential. The legal judgment of competition is one crucial problem. On the one hand, the identification of competition should be strictly limited in those fields which substantially compete with the former company, but not limited to the registered business scope of the original company; on the other hand, after getting the permit of the company, the conducts of directors who compete in the same industry the provisions of the problem of disgorgement right in company law when the directors violate the non-competition obligation are very brief, the supervisors of company are excluded from the subjects of statutory liabilities in non-competition, and the relevant system of legal liabilities is not adequate. From the perspective of corporate governance, the provisions of non-competition in cu rrent labor contract law are too partial to the protection of company's business secrets, which do not help the directors make full use of their human capitals.