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.
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