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The Higher Regional Court of Hamm has ruled that non-compete obligations in a company's articles of association can extend to wholly owned subsidiaries of shareholders under the principle of good faith, even when those subsidiaries are not themselves shareholders. This decision addresses whether shareholders can circumvent contractual restrictions by channeling competitive activities through controlled entities that share economic identity with the parent company.

In import-export transactions across Europe, it is common for sellers to protect the assets they have sold by retaining the ownership title until the buyer...