Fiduciary duty is a legal obligation to act solely in another party's interests. It is established by taking on professional or personal responsibilities. For example, a corporate officer has a fiduciary duty to shareholders and a doctor has a fiduciary duty to a patient. The term fiduciary duty has also been interpreted in some jurisdictions to extend to family and other personal duties.
A fiduciary relationship is typically created when a person or group that is in a position of vulnerability vests trust, reliance and good faith in the representation, advice and protection of a professional. The parties being represented are known as the principle and the representative is known as the fiduciary.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
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