S.L. 234.42 Art. 57Directors competing with company.

(1) Unless authorised in the memorandum or articles of a company a director may not, in competition with the company and without the approval in writing of all the members of the company given at a general meeting, carry on business on his own account nor may he be a partner with unlimited liability in another partnership which is in competition with that company.

(2) Where a director acts in violation of the prohibition contained in this regulation, the company may, at its option, either take action for damages and interest against him or demand payment of any profits made by him in contravention of this regulation.

(3) The provisions of this regulation shall be without prejudice to any other remedy which a company may have against a director for breach of duty.