Article 149 of the Company Law stipulates: "Directors and senior managers shall not commit any of the following acts: ..... (5) Without the consent of the shareholders' meeting or shareholders' meeting, take advantage of their position to seek business opportunities for themselves or others, and engage in business similar to the company they work for". 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." 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." Article 32 of the Partnership Enterprise Law stipulates: "A partner shall not engage in business competing with the partnership enterprise on his own 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. The obligation of non-competition can also be derived from non-competition, that is, 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.

Legal objectivity:

Prohibition of business strife, also known as prohibition of business strife and prohibition of business strife, is a legal measure taken by the employer to protect its business secrets. It is to restrict and prohibit employees from taking part-time jobs in business competition units during the existence of labor relations or within a certain period after the termination of labor relations, and to restrict and prohibit employees from engaging in businesses that compete with their own units after leaving their jobs. Including not working in other business units that produce similar products or operate similar businesses and have competitive relations or other interests, not working part-time or working in other employers that produce similar products or operate similar businesses, and not producing similar products or operating similar businesses on their own. The relevant laws of our country do not clearly define the object of non-competition. Therefore, as a part of the labor contract, the non-competition clause voluntarily signed by both employers and employees has legal effect. However, due to the non-competition agreement, employees' labor rights are restricted, and labor rights are one of the basic rights of citizens guaranteed by the Constitution. Therefore, whether the non-competition contract is effective depends on whether it harms the basic living interests of employees. As the basic condition for the entry into force of the non-competition agreement, the enterprise must make economic compensation for the employee's non-competition behavior, and the compensation amount and payment method must be stated in the non-competition agreement at the same time, otherwise the agreement will be invalid. There is no clear and authoritative regulation on the amount of compensation for non-competition in law. According to the relevant regulations of Shenzhen and Zhuhai, the compensation amount must not be less than 2/3 of the employee's annual income, 1/2. If the amount of compensation is small, the court will generally rule that the non-competition agreement is invalid. The Labor Contract Law of People's Republic of China (PRC) stipulates the prohibition of business strife as follows: Article 23 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. Twenty-fourth persons 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.