Breaches of Fiduciary Duty
Fiduciary duties apply in a wide variety of commercial situations. A fiduciary duty is a relationship based on loyalty and utmost good faith concerning the management of money or property between two or more parties, most commonly a fiduciary and a principal. Such duties commonly apply to company directors and employees.
Fiduciary duties require directors, shareholders and trustees to act in the best interests of a company or trust. In the event of a failure to do so, the courts can grant appropriate remedies and relief to principals. For example, if a company director acquires a benefit from the company’s suppliers without the company’s knowledge, he should not be allowed to retain that benefit and that money is treated by the law as rightfully belonging to the company. Even if the money or assets in question are dissipated, the fiduciary remains personally liable for the equivalent of the benefit received.
Our team can advise you on your rights and the available remedies for the breach in question. Remedies can range from injunctive relief, damages, disciplinary proceedings, criminal sanctions or even setting aside a transaction.