Menlo Park Fiduciary Relations Lawyers for Business Relationships
What Are Fiduciary Duties?
Fiduciary duties are owed by fiduciaries. Someone is considered to be a
“fiduciary” if a duty of good faith, trust, loyalty, confidence,
or care has been imposed upon that person by law. In the context of a
business relationship, the following parties may be trusted to uphold
- Directors owe fiduciary duties to the business entity
- Majority shareholders owe fiduciary duties to minority shareholders
- Business partners owe fiduciary duties to the partnership
- Trustees owe fiduciary duties to beneficiaries
When a business relationship requires some level of trust, the law attempts
to protect those who are owed fiduciary duties. Legal consequences can
be imposed on fiduciaries who violate their responsibility to uphold a
specific set of duties. In many cases, they can be held liable for monetary
damages. At Flicker, Kerin, Kruger & Bissada LLP, we handle fiduciary
relations for clients in Menlo Park, San Ramon, and throughout the Bay Area.
Types of Fiduciary Relationships
Business Officers and Directors: As an officer or director of a business, fiduciary duties are owed to
the business entity. If, for example, an officer or director takes property
belonging to the business for his or her own benefit, they would be liable
to the business entity.
Majority Shareholders: Majority or controlling shareholders may take on fiduciary duties if they
assume control of a corporation through their place on the board. When
they make decisions on behalf of the business, they owe a duty of loyalty
to the minority shareholders.
Partners in Business Together: When two people enter into a business partnership, and they both have
a role in managing the partnership, they owe fiduciary duties to the partnership
itself. Each partner is expected to operate on the concept of equity and