Hong Kong court finds junior sales staff can owe fiduciary duties when entrusted with clients
In Eventmaster Limited v Chen Hiu Kwan & Ors [2026] HKCFI 3380, the Court of First Instance ("CFI") examined a dispute arising from the departure of key members of a sales team who, while still employed, set up and operated a competing business that diverted business opportunities away from their employer.
The decision is of particular importance as it addresses the scope of fiduciary duties owed by senior employees and sales staff, the protection of confidential business information in the employment context, and the circumstances in which a competing company may be held liable for the acts of former employees. It also serves as a timely reminder that, although employees may in some circumstances take preparatory steps towards future competition, the Court will closely scrutinise conduct that crosses the line into active competition, misuse of confidential information, or diversion of mature business opportunities during the subsistence of employment.
Eventmaster Limited ("Employer") is a Hong Kong company which carries on business as service provider in technological support in relation to the organisation and management of events. It had a portfolio of substantial corporate and agency clients, including Pacific Alliance Group ("PAG"), AXA General Insurance Hong Kong Limited ("AXA"), DBS Bank (Hong Kong) Limited ("DBS"), Hongkong Land Limited ("HK...
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