Is the prohibition of competition between directors and executives absolute or relative?

The prohibition of business strife of directors and senior managers of a company belongs to the prohibition of business strife in a narrow sense, which is neither absolute nor relative.

There is no absolute prohibition or relative prohibition of competition. According to different standards, non-competition can be divided into the following categories:

1. According to the different causes of non-competition, it can be divided into statutory non-competition and agreed non-competition. Statutory non-competition means that non-competition comes directly from legal provisions. As stipulated in the above Company Law. Agreed non-competition means that the obligation of non-competition comes from the agreement of the parties.

2. According to the different scope of the obligation subject, it can be divided into broad non-competition and narrow non-competition. The obligation subject of the former is unspecified majority, such as trademark exclusive right, patent right, copyright, etc. The subject of the latter obligation must have a specific relationship of rights and obligations with the obligee, such as employment and entrustment. Item 5 of Article 149 of China's new Company Law stipulates that the obligations of directors and senior managers belong to the narrow sense of non-competition. The prohibition of business strife mentioned in this paper is a narrow one.

3. According to the different ways of non-competition, it can be divided into non-competition in the same industry and part-time non-competition. The former is that the prohibited non-competition behavior is the same as or similar to the business of the obligee; The latter means that the non-competition behavior is related to the business of the obligee or the obligor may not concurrently serve as the chairman, executive director or director of other companies.

4. According to the time when the non-competition came into being, it can also be divided into the non-competition during the on-the-job period and the non-competition after leaving the job.