Questions & Answers
Legal action of a company owner against an employee stealing clients and business
I have an LLC technical company made in November 2017 and sold 50% share to one of my employees in 2019. I gave him all signature authority to handle our company and his salary will be paid as an employee.
Later on, in September 2020 he made his own LLC technical license without informing me with a similar name and business to my company and used all resources asset of our common company without my knowledge and permission for his personal company and personal benefit.
He is still my employee and getting paid his salary as well as a partner also and he is doing all work with our common resources for his personal company use and taking our clients due to the similar name of his own business.
I want to know if any Legal action is possible for his misuse of common resources and obtaining a license without any NOC.
Please advise. Your early response will be highly appreciated.
Dear Sir/Madam,
Thank you for your inquiry. Our firm Maha Bin Hendi would be glad to assist you with your inquiry.
In response to your matter, kindly note the action and misconduct of your employee as you prescribed by your end may be considered as unfair coemption in accordance to the applicable labour law and the related laws and regulations.
However, there are several elements which may affect characterizing your employee’s action.
Therefore, it would be prudent to receive the related documents in order to assess the chances of filing an unfair coemption case.
Accordingly, please communicate with us as per the below details.
N.B: the initial consultation is free subject to the firm’s sole discretion.
Please send the related document to our email mentioning in the Subject email (Prospect Client).
Best regards
Answer- As per your question, you gave the authority to handle the operations.
Is he the manager as per the license? If he is the manager, then you can file a case for his fraudulent activities claiming the loss caused due to his activities being a manager or as a partner you can also claim benefits from the court.
We have to see, that how he is using the name of the company. If the name can be protected through trademarks, otherwise with proper protection can be made legally through court order or through DED.
Please contact us on our phone or email for further information.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of Law.
Dear Questioner,
We can certainly assist you in this regard. We can file a Civil & a Criminal Case in the scenario you have mentioned.
We would need more details to give you appropriate legal advice.
You can call us on the phone.
Regards.
