Fiduciary Duties - Case Study Example

hellip; Fiduciary Duties for Directors.... The law specifies that some of the Fiduciary Duties of a director are care, loyalty and good faith.... Directors of corporations that are facing insolvency owe Fiduciary Duties to the corporation itself and to shareholder, never to creditors.... These three duties also give rise to a fourth, but equally important duty, that of disclosure.... Duty of Loyalty This fiduciary duty can be traced back to the Guth v Loft case in which the state Supreme Court passed that “corporate officers and directors are not allowed to use their position of trust and confidence to further their private interests” (p....

Regardless, Fiduciary Duties are typically provided for in standard contract forms.... Despite the fact that the Fiduciary Duties are typically detailed in the standard form of contract, the fiduciary remains bound by the principle fiduciary duty of good faith.... These duties usually include the no conflict rule, a duty of loyalty, the rule against personal profits and confidentiality rules.... Frase advises however, that financial institutions such as banks are not typically regarded as fiduciaries in the ordinary course of their duties....

In the execution of his duties, it is inevitable that a Director will face a conflict of interests, but he is required to be self regulated by a strong code of ethics in his dealings.... The Executive Director is the principal agent of the Company but under the law, has been held to be subject to the same standards of loyalty and good faith in his duties as that expected from trustees3 and therefore has a fiduciary duty to the shareholders4....

This case discusses facts that relates to the failure of demonstrating Fiduciary Duties as director by Daniel by his move to persuade his colleagues to purchase a warehouse that was undervalued that worth more than $5000.... Daniel failed to carry out Fiduciary Duties of loyalty and care as an executive director, working as a chattered accountant of the Sofa & Bed Ltd.... Failing to carry out the principals then any losses or benefits incurred by the directors, which was to go into the company's… Good directors should not conflict their personal greed and interest with the goals and objectives of the company since this attributes to failure in carrying out their duties....

Additionally no Fiduciary Duties towards the LLC were violated since being a manager also entails management of all company assets; unless Mark Levitt intended to sell off the real estate for personal interests over the company interests (Fitzpatrick, 2014).... Fiduciary Duties For Members and Managers of LLCs.... om/legal-encyclopedia/fiduciary-duties-for-members-managers-llcs....

Business law is an essential aspect in the business world due to the responsibility of giving guidance on the rights and relations of involved parties.... In simpler terms, business law comprises of the various laws surrounding formation, running, and closure of any business… Additionally, business laws include state, federal, and administrative laws hence it is important for people engaging in business ventures to have this knowledge....

Fiduciary Duties from the above issues in the Inside Job have been breached.... The Fiduciary Duties involve different elements.... The analysis of this film from a legal perspective illustrates that Fiduciary Duties of clients were breached.... One legal aspect that was clearly brought out in the movie is the issue of fiduciary duty.... fiduciary duty is a legal obligation that one party, in this case, referred to as the fiduciary, act solely on another party's called, the principal, interests....

hellip; Farrar has spelled out these Fiduciary Duties and one of the most important aspects of this fiduciary duty arises when there is a conflict posed between the Director's interests and the interests of the Company, where a Director is expected to subordinate his own interests to that of the Company rather than profit from his position as a Director.... Therefore, the general duties of a Director have been set out as a general allowance in making decisions according to their own discretion, however, a director's actions and decisions are expected to be in the best interests of the Company....