Company Law Forum - Explaining Companies Act 2006 - Quandary

Quandary - Invested interest?

Written by Dave Coles

Tuesday, 15 September 2009

Not sure if anyone can help, after a bit of advice, we have an employee who's wife also works for us part time but in addition has her own "design" company, a large sub-contract order has gone to her company for the design, supply & fit of kitchens/bathrooms on one of our larger sites, in turn she has raised an order to another company (who we have a direct account with) to supply the kitchens/bathrooms - is this legal or just immoral? as it is, she stands to gain rather a large "Slice" of the profits that, in my opinion should be the company's.

Does anybody know if this is against company law, or is it just a case of a "loophole" where individuals can make profits at the expense of others?

Thanks

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Comments (4)

1. Written by kps75, on 13-10-2009 18:45
this is really outside my area of expertise but wouldn't your normal contract of employment have some clause against employees profiting from your business? i'd check all your contracts and also staff handbook etc.
i would also have though a development/discplinary issue for the QS who should not be placing an order through the wife whereby it costs more - however, is the wife's company providing additional service - design, porject management, whereby can justify the additional charge?
have you spoken to them about it?

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2. Written by kps75, on 13-10-2009 18:45
this is really outside my area of expertise but wouldn't your normal contract of employment have some clause against employees profiting from your business? i'd check all your contracts and also staff handbook etc.
i would also have though a development/discplinary issue for the QS who should not be placing an order through the wife whereby it costs more - however, is the wife's company providing additional service - design, porject management, whereby can justify the additional charge?
have you spoken to them about it?

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3. Written by buyer1, on 23-09-2009 08:36
Sorry, didn't explain very well, the bottom line is the person involved has her own Ltd deisign company but also works part time as a sec (and is married) to one of our senior QS's, we had a large order to place for the supply & fit of kitchens on a new development which we were going to place with a nominated company then out of the blue, our QS placed the order with his wife who then in turn placed the order with the kitchen company who we were originally going direct to - the value of the order is more than the original order would have been (design fee - although within budget)the question, is this legal? as she actually works for us as well as owning her own company plus she was involved in the paperwork side of the costings etc etc so would know exactly the figures i.e. budgets etc involved, hope this makes sense
Thanks

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4. Written by kps75, on 22-09-2009 12:26
i'm not sure i understand you're question. can you explain a bit more about what you think she has done wrong? thanks

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