What is a ‘Family Office’? A Family Office or a Single Family Office (SFO) is a professional platform dedicated to investing financials of high and ultra high net worth individuals, with the objective to manage and protect the wealth of a family through private wealth management advisory outfits. A Family Office allows the family to pursue its own customized wealth management approach and guarantees the highest degree of confidentiality, thereby giving such individuals greater control over their finances. A Family Office provides solution for building, preserving and transferring family wealth and legacy. The concept of Family Office is limited to high and ultra high net worth individuals, as they have higher risk-taking capabilities. Another common concept is Multi-Family Offices (MFO) which provides a variety of financial and non financial services including tax and estate planning, risk management, objective financial counsel, trusteeship, lifestyle management. As...
Non-Compete clause bars employees from competing with the business of the former employer during the term of the employment, as well as post termination of the employment agreement. The non-compete clause is a relatively common to employment agreements with key employees, directors and promoters. Non-Solicitation clause prohibits the employees from persuading the former employer’s customers, workforce, third parties like agents or suppliers etc from terminating their relationship with the employer and join the former employee. Below are the frequently asked question on non compete and non solicit clauses and their impact on employee agreements in India. 1. Whether a non-compete clause is enforceable against an employee in India as a matter of law. 1.1 Pursuant to the provisions of the Indian Contract Act, 1872, the law governing commercial agreements and transactions, agreements wherein any restraint or limitation is imposed, which restricts either...