College Station, Texas Corporate Attorney Explains Fiduciary Duties
Breach of Fiduciary Duty
In the world of business, fiduciaries are advisors, directors, or representatives who are entrusted to access or control finances, business operations, or personal information. Because of the extent of these responsibilities, fiduciaries have a heightened duty to the business entity. In fact, they must act in good faith and fair dealing.
Breaching such a duty can have economic consequences as well as legal ones: you or your business may suffer substantial financial losses. If you have been involved in a breach of fiduciary case, contact an experienced College Station, Texas corporate attorney to find out about the legal remedies or defenses that are available to your particular situation.
What Does It Mean to Be a Fiduciary?
Fiduciaries in the professional world include investment advisors, real estate and mortgage brokers, and attorneys. All have the fiduciary duty to act in their client's best interests. Even within the structure of a business entity, corporate board members and directors owe a fiduciary duty to the shareholders of the company.
An important aspect of a professional's fiduciary duty is the duty to act in utmost good faith. This is based on trust and reliance: at the beginning of the relationship between the fiduciary and the party or business entity (the “principal”), the fiduciary agrees to exercise his expertise and discretion in handling the principal's matters.
In addition, the fiduciary must not act in any manner that is adverse or contrary to the principal's interests. The principal deserves the best efforts of the fiduciary in exercising all of the skill, care, and diligence at his disposal.
Breach of Fiduciary Duty
If the fiduciary fails to uphold this standard through acts or omissions that are contrary to the principal's interests, then a breach of the fiduciary may be deemed to have taken place. If that occurs, then the injured principal may take legal action against the fiduciary in order to recover damages or benefits.
If you are dealing with issues related to the breach of fiduciary duties, get the help you need from a knowledgeable and skilled College Station, Texas corporate attorney who can fight for you. We at the Peterson Law Group are committed to giving our clients the high level of professionalism and legal advocacy they deserve. For an initial consultation, do not hesitate to call the Peterson Law Group at (979) 703-7014 or through our online contact form.