Fiduciary Duties

A Fiduciary Duty is a legal or ethical relationship of confidence or trust regarding the management of money or property between two or more parties.

In the context of a Company, for example, the Directors of the Company hold a fiduciary duty and act in a fiduciary capacity to the Shareholders of the Company.

A Fiduciary Duty is the highest standard of care at either equity or law. A Fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the "principal") and he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.