What is the non-competition clause in the company law?

Prohibition of business strife is an important behavior among companies in China, because if competition is allowed, it will probably lead to vicious competition or have a bad influence on the management in the market, so this clause has been clearly stipulated in the law. Many people want to know what is the non-competition clause in the Company Law? 1. What is the non-competition clause in the company law? At present, China's laws mainly prohibit commercial competition: 1, and Article 149 of the Company Law stipulates: "Directors and senior managers shall not commit the following acts:". (5) Without the consent of the shareholders' meeting or shareholders' meeting, taking advantage of his position to seek business opportunities belonging to the company for himself or others, and operating the same business as the company he works for himself or others ". Article 70 of the Company Law stipulates: "The chairman, vice chairman, directors and senior managers of a wholly state-owned company shall not hold part-time jobs in other limited liability companies, joint stock limited companies or other economic organizations without the consent of the state-owned assets supervision and administration institution." 2. Article 37 of the Regulations for the Implementation of the Law on Chinese-foreign Joint Ventures stipulates: "The general manager or deputy general manager shall not concurrently serve as the general manager or deputy general manager of other economic organizations, and shall not participate in the commercial competition of other economic organizations against this enterprise." 3. Article 32 of the Partnership Enterprise Law stipulates: "A partner shall not engage in business competing with the partnership enterprise on his own account or in cooperation with others." Non-competition is a further refinement of the faithful obligation of directors and senior managers by law. The law clearly stipulates that directors and senior managers are prohibited from competing with the employer during their tenure. Second, what is the obligation of non-competition? The obligation of non-competition is that the employer and the employee agree through the contract that the employer pays certain economic compensation to the employee, so as to restrict the employee from competing with the employer in the same industry within a certain period, scope and region after the termination of the labor contract. In short, the obligation of non-competition is an agreed obligation. Article 23 of the Labor Contract Law stipulates: "The employer and the employee may agree in the labor contract to keep the business secrets of the employer and confidential matters related to intellectual property rights. For the workers who have the obligation of confidentiality, the employer may stipulate the non-competition clause with the workers in the labor contract or confidentiality agreement, and stipulate that after the labor contract is dissolved or terminated, the economic compensation will be paid to the workers on a monthly basis during the non-competition period. If the laborer violates the non-competition agreement, he shall pay liquidated damages to the employer in accordance with the agreement. " Article 24 stipulates: "The personnel with non-competition restrictions are limited to the senior managers, senior technicians and other personnel with confidentiality obligations of the employing unit. The scope, area and time limit of non-competition shall be agreed by the employer and the employee, and the agreement on non-competition shall not violate the provisions of laws and regulations. After the dissolution or termination of the labor contract, if the personnel specified in the preceding paragraph go to other employers that have a competitive relationship with their own units to produce or operate similar products or engage in similar businesses, or start their own businesses to produce or operate similar products or engage in similar businesses, the non-competition period shall not exceed two years. " The obligation of non-competition is that the employer and the employee agree through the contract that after the termination of the labor relationship, the employer will pay a certain amount of compensation to limit the employee's right to choose a job, thus protecting the business secrets and interests of the employer.