Firstly thank you for the opportunity to ask this question.
Here is the background.
Five years ago, we had a company structure that was 90% owned by my wife and I, and 10% owned by a director of our company.
I became severely ill very suddenly and was taken out of the workforce for some time for treatment. We trusted the financial side of the business to the part owner during that time. While he didn't steal any money, he provided false figures to us showing the business was performing fine when in fact it wasn't. His aim was to make sure he kept getting paid each month as he needed the money to prop up another business. He stopped paying tax and superannuation for all of our staff for about 12 months before we discovered it.
He also didn't pay suppliers and contractors commission. So we owed a lot of people money, but the super and tax was clearly a major problem.
When we confronted him, we told him he had to work for free until the mess was sorted so he left. He then spent a lot of time going to everyone we owed money to telling them we were fully aware of the whole situation and knew they were not getting paid. We considered suing him but the feedback from people he knew was that he had no money or assets.
We sold some assets and gradually sorted out all the debt and kept the business going.
Here is my question:
It now seems not only did he do all of that but he took our database with him when he left. He has now emailed people on the database promoting his new business, we don't know if it is his business or if he is working or doing a JV with someone else.
As company directors, is it legal for him to take the database and use it with his current business venture? Or can we warn him off legally that if he uses the database again we will sue?
Thanks,
Here is the background.
Five years ago, we had a company structure that was 90% owned by my wife and I, and 10% owned by a director of our company.
I became severely ill very suddenly and was taken out of the workforce for some time for treatment. We trusted the financial side of the business to the part owner during that time. While he didn't steal any money, he provided false figures to us showing the business was performing fine when in fact it wasn't. His aim was to make sure he kept getting paid each month as he needed the money to prop up another business. He stopped paying tax and superannuation for all of our staff for about 12 months before we discovered it.
He also didn't pay suppliers and contractors commission. So we owed a lot of people money, but the super and tax was clearly a major problem.
When we confronted him, we told him he had to work for free until the mess was sorted so he left. He then spent a lot of time going to everyone we owed money to telling them we were fully aware of the whole situation and knew they were not getting paid. We considered suing him but the feedback from people he knew was that he had no money or assets.
We sold some assets and gradually sorted out all the debt and kept the business going.
Here is my question:
It now seems not only did he do all of that but he took our database with him when he left. He has now emailed people on the database promoting his new business, we don't know if it is his business or if he is working or doing a JV with someone else.
As company directors, is it legal for him to take the database and use it with his current business venture? Or can we warn him off legally that if he uses the database again we will sue?
Thanks,
