Fiduciary duty.3 Jun 2021 08:04
Take note Mr Young, you are imo guilty of some if not all of the following.
"Fiduciary duty is a legal obligation of the highest degree for one party to act in the best interest of another. The party charged with the obligation is the fiduciary, or one entrusted with the care of property or money.
The three fiduciary responsibilities of all board directors are the duty of care, the duty of loyalty and the duty of obedience, as mandated by state and common law.
The fiduciary duty is the highest standard of care. It's acting in the best interest of the client, stakeholders or beneficiary in all situations, even if those decisions are contrary to your own interests.
An example of a fiduciary?
They include lawyers acting for clients, company executives acting for stockholders.
A breach of fiduciary duty can give rise to civil liability. Civil lawsuits can have significant financial consequences.
The most common penalties for a breach of fiduciary duty are compensatory damages, punitive damages, double or treble damages, fees, costs, and removal of the fiduciary.
Because of this high duty of care, breaching fiduciary duty is considered very serious and can result in litigation.
Both the board of directors and the CEO of any business have a fiduciary responsibility to the business's shareholders. The fiduciary duties are legal concepts that form the basis of a CEO's legal relationship with his company's owners.
If the board of directors or individual board members have breached a fiduciary duty to the shareholders, the shareholders can bring a lawsuit to protect their interests.
Examples include,
Denying shareholders access to records, fundamental information and details pertaining to company value,
Misleading or false information"