Company directors, having fiduciary duties, must meet a high standard…
“A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. Fiduciary duty implies a stricter standard of behaviour than the comparable duty of care at common law. The fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest.”*
For how strictly this standard is applied, see the recent case of Towers v Premier Waste Management Limited.
*From the evidence of the Financial Services Consumer Panel to the Joint Committee on the draft Financial Services Bill, contained in the Joint Committee’s report at paragraph 117.
Friendly Corporate PSL
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