What is the typical time period for the enforcement of a restrictive covenant in a shareholder agreement?
Non-competes should never go past two years, although the shorter the time period the more enforceable the non-compete. Each situation is different as time period is only one component of the three part test a Georgia Court will apply when assessing the enforceability of a non-compete. The three element test consists of the: (1) non-compete time period; (2) geographic limitation of the non-compete; and (3) scope of the activities limited by the non-compete. Q: What methods are typically used to calculate the buyout price when a shareholder physician retires or otherwise leaves the practice? A: The methods I see used to calculate the purchase price vary but there are three common themes. One method is the board of directors setting a share price that will be used for the year until the board meets again to set the price for the following year. Another method is agreement on a purchase price formula based upon the Doctor’s collections during a period of time or book value of assets (alth
