It's against the law for a fiduciary to breach their duty to a beneficiary. The two parties have entered into a contract. A court might decide the fate of the fiduciary if they're sued for failing to exercise their duties under that contract. The plaintiff can recover damages, including p...
The Delaware Supreme Court recently held that corporate directors鈥fiduciary duties do not expand beyond the enterprise and shareholders to encompass creditors. This applies both when the corporation is in the zone of insolvency and when actually insolvent. Thus, should corporations take on more risk ...
A board of directors is an elected group that represents a company's shareholders. Learn about the board's duties including board fiduciary responsibility.
They report directly to the CEO and have a fiduciary responsibility to the Board of Directors and shareholders. CFOs are expected to be not only stewards of the finance department, but also strategic catalysts of company growth. This is not to say CFOs have relinquished their responsibility for ...
Department of Labor Focuses on Revenue Practices: What Are Your Fiduciary Duties Regarding Revenue-Sharing Arrangements?C. Baird Brown
Conduct unbecoming of a board member. The board can oust members or ask them to vacate their seat in the event they fail in their fiduciary duties to shareholders. The removal of a board member is a significant event in a company’s timeline. Their spot is usually filled by an interim ...
Professor Miller discusses fiduciary duties in the LLC context and recommends two types of statutory protections, both of which are contained in the Uniform Limited Liability Company Act, namely a prohibition on unreasonable reductions in fiduciary ditties and a mechanism for judicial dissolution. 展开 ...
As previously noted, corporate directors must be aware that they have a fiduciary role in the oversight of a company’s valuable IP assets, as well as an understanding of the associated risks. A corporate director must be adequately informed about and involved in the company’s IP strategy. ...
Fiduciary duties may be required of a stockholder in certain circumstances when they possess a majority interest in a corporation or exercise control over its activities. A breach of fiduciary duty may result in personal legal liability for the controlling shareholder as well as for directors and of...
Directors may be removed in elections or by other means in instances such as fiduciary dutyviolations. In addition, some corporate boards have fitness-to-serve rules that may lead to the removal of a director if broken. For example, some rules are intended to prevent abuse of board power, d...