AFM231 Lecture Notes - Lecture 17: Fiduciary, Takeover Target, Business Judgment Rule
20 Mar 2016
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A right to sue or a cause for action. If someone owes a fiduciary duty and they don"t fulfill it then they owe a duty. Separate cause of action that could come up in business. Can come up in a variety of different contexts. Fiduciary duty raises obligations on the agent on behalf of the principle. If you start a company and you name yourself as the first director you add fiduciary duties to the corporation. Professionals- owe fid. duty to clients: directors- owe fid. duty to corporation, agents- owe fid. duty to principal. Parent- owe fid. duty to child: teacher- owe fid. duty to student, trustee- owe fid. duty to beneficiaries, these have been longstanding relationship where fiduciary duty is imposed. Fiduciary duties: not all business relationships create a fiduciary duty. Not all employees are in a fiduciary relationship with their employer: depends on role/responsibilities. A person can be in a fiduciary relationship in some circumstances and not others.
