Breach of Fiduciary Obligations
A fiduciary relationship is one of trust and confidence – at law a fiduciary is one who owes legal and ethical duties in managing something for someone’s benefit. This concept is central to the law of trusts as well as the law of business as directors and officers of a corporation often owe fiduciary obligations in managing the company.
A fiduciary will be liable where it has been shown they acquired profit by a conflict of interest/duty or by using their fiduciary relationship for personal gain. For example, a breach of fiduciary duty may arise in the context of insider trading – wherein an officer of a corporation is using the information attained about a company’s finances acquired as a result of the fiduciary relationship for personal gain.