The article examines the statutory prohibition on competition for managing directors of Austrian GmbHs and AGs and its limits in practice. It explains that the prohibition may be waived by consent, which according to the Supreme Court can be implied when shareholders knew of competing activities at appointment. The authors outline remedies available after a breach, including damages, step-in rights, information claims and injunctive relief, also by preliminary injunction. They warn of short limitation periods and of the fact that the prohibition ends with removal from office, and recommend supplementing the statutory regime with contractual arrangements.