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A fiduciary duty is one party’s obligation to act to the benefit and in the interest of another party.
Smith claimed that in selling the property at less than the highest offer Johnson had breached her fiduciary duty as insolvency administrator.
A fiduciary duty generally arises when one party (the principal) entrusts another party (the fiduciary) with managing assets. Examples include a CEO’s duty to shareholders to protect the value of the company, a stockbroker’s duty to trade at a price most beneficial to the client rather than what brings the highest commissions to the broker, and a lawyer’s duty to clients. A fiduciary duty represents the highest duty a person can have and thus should preclude any potential conflicts of interest, requiring the fiduciary to act always in the interest of the principal.
Fiduciární povinnost je povinnost jedné strany jednat ve prospěch a v zájmu jiné strany.
Pan Smith tvrdil, že prodejem majetku za menší než nejvyšší nabídku paní Johnsonová porušila svou fiduciární povinnost insolvenčního správce.
ární povinnost obecně vzniká, když jedna strana (fiduciant) zmocní jinou stranu (fiduciáře) správou majetku. Příklady zahrnují povinnost generálního ředitele akcionářům chránit hodnotu společnosti, povinnost makléře obchodovat za cenu, která je nejvýhodnější pro klienta oproti té, která přinese nejvyšší provize makléři, nebo povinnost právníka ke klientovi. Fiduciární povinnost představuje nejvyšší povinnost, kterou může osoba mít, a proto by měla vyloučit jakékoli potenciální střety zájmů a požaduje, aby fiduciář vždy jednal v zájmu fiducianta.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
