Fiduciary Duty

Fiduciary Duty

Fiduciary Duty Jonathan Poland

Fiduciary duty refers to the legal obligation of one party to act in the best interests of another party. This duty is typically imposed on individuals or organizations that hold a position of trust, such as directors of a corporation, trustees of a trust, or financial advisors. Fiduciary duty requires that the party with the duty act with the highest level of care, loyalty, and good faith towards the party they are acting on behalf of. This means that they must prioritize the interests of the other party over their own and avoid conflicts of interest.

Fiduciary duty is an important concept in a variety of contexts, including corporate governance, estate planning, and financial planning. In the corporate context, directors and officers of a company owe a fiduciary duty to the company and its shareholders, and must act in the best interests of the company in all decisions and actions. In the context of estate planning, trustees of a trust owe a fiduciary duty to the beneficiaries of the trust, and must manage the trust assets in a way that is in the best interests of the beneficiaries. Similarly, financial advisors owe a fiduciary duty to their clients, and must act in the best interests of their clients when providing financial advice and managing their assets.

The bottom line, fiduciary duty is a legal obligation that requires those who hold positions of trust to act in the best interests of the parties they are acting on behalf of, and to avoid conflicts of interest. It is an important aspect of good governance and helps to promote trust, transparency, and fairness in a variety of contexts.

The duty of a fiduciary to a principle may include:

– undivided loyalty
– representing the interests of the principle in good faith
– acting without self-interest
– confidentiality
– exercising care, due diligence and prudence
– protecting money and assets
– avoiding conflicts of interest
– promptly informing the principle of material information
– maintaining detailed records and accounts
– not to profit without the knowledge and consent of the principle

Learn More…

Needs Analysis Jonathan Poland

Needs Analysis

Needs analysis is the process of identifying the valuable requirements for a…

Business Constraints Jonathan Poland

Business Constraints

Business constraints are limitations or factors that can impact an organization’s ability…

Value Added Reseller Jonathan Poland

Value Added Reseller

A value added reseller (VAR) is a company that buys products from…

Test Marketing Jonathan Poland

Test Marketing

Test marketing involves testing different marketing strategies or variations on customers in…

Aftermarket Jonathan Poland


The aftermarket refers to the market for products and services that are…

Business Risk Jonathan Poland

Business Risk

A business risk is a potential event or situation that could negatively…

Premium Pricing Jonathan Poland

Premium Pricing

Premium pricing is a pricing strategy in which a company charges a…

Sales Goals Jonathan Poland

Sales Goals

Sales goals are targets for the revenue or units sold that a…

Value Pricing Jonathan Poland

Value Pricing

Value pricing is a pricing strategy in which a company sets its…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Distribution Jonathan Poland


Distribution is the process of making a product or service available for…

Domain Knowledge Jonathan Poland

Domain Knowledge

Domain knowledge refers to a person’s understanding, ability, and information about a…

Sales Promotion Jonathan Poland

Sales Promotion

Sales promotion refers to the use of various incentives and discounts to…

Technical Requirements Jonathan Poland

Technical Requirements

Technical requirements are specifications for a technology such as a system or…

Competitive Factors Jonathan Poland

Competitive Factors

Competitive factors are external forces that impact a business’s strategy. They can…

Risk Awareness Jonathan Poland

Risk Awareness

Risk awareness refers to the extent to which people or organizations are…

Product-as-a-Service Jonathan Poland


The Product-as-a-Service business model involves offering a service in areas that were…

Cost Advantage Jonathan Poland

Cost Advantage

A cost advantage refers to the ability of a company to produce…

Ideation Jonathan Poland


Ideation is the process of generating ideas and solutions to problems. It…