Article – Fiduciary Duty Failures (Articles) Fiduciary Duty is a legal obligation one party has to act in the best interests of another. It’s a cornerstone of trust and confidence in various professional relationships, such as those between financial advisors and their clients, trustees and beneficiaries, and corporate directors and shareholders. Here’s a breakdown of […]
Category: Fiduciary Duty
Fiduciary Duty is a legal obligation where one party, known as the fiduciary, is entrusted to act in the best interests of another party, known as the principal or beneficiary. This duty is grounded in trust and requires the fiduciary to prioritize the interests of the principal above their own, avoid conflicts of interest, and act with utmost good faith, care, and loyalty. Common examples include the responsibilities of corporate directors to shareholders, trustees to beneficiaries, and financial advisors to their clients. Breaching this duty can lead to legal consequences and damage to the fiduciary’s reputation.