We often receive enquires related to fiduciary obligations owed to a company by its partners/members/shareholders etc.
Generally speaking, a fiduciary relationship exists when an entity or person (usually an officer/director/shareholder etc.) places trust, confidence, and/or reliance on another to exercise discretion or expertise in acting on their behalf. The fiduciary must knowingly accept that trust and confidence.
When someone owes a fiduciary duty to a company and its members, the fiduciary must act in a way that will aligns with the company and its’ members goals and aspirations. The person who has a fiduciary duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary.
If the fiduciary breaches his or her duties, they would need to account for the ill-gotten profit which means that the beneficiary is typically entitled to damages resulting from the illicit conduct.
To learn more, contact an Attorney at Ross Pitcoff Law today: (646) 386-0990