fiduciary

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Related to Fiduciary duties: Fiduciary relationship

fiduciary

(fĭdo͞o`shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Among the common fiduciary relationships are guardian to ward, parent to child, lawyer to client, corporate director to corporation, trustee to trusttrust,
in law, arrangement whereby property legally owned by one person is administered for the benefit of another. Three parties are ordinarily needed for the relation to arise: the settlor, who bequeaths or deeds the property for another's benefit; the trustee, in whose hands
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, and business partner to business partner. In discharging a trust, the fiduciary must be absolutely open and fair. Certain business methods that would be acceptable between independent parties dealing with one another "at arm's length" may expose a fiduciary to liability for having abused a position of trust. Thus, in an ordinary business transaction the prospective purchaser of land need not inform the seller of an imminent rise in realty values, but one buying land from a partner must disclose such information. In many cases courts will treat an unexplained profit derived from a fiduciary relationship as an instance of constructive fraudfraud,
in law, willful misrepresentation intended to deprive another of some right. The offense, generally only a tort, may also constitute the crime of false pretenses. Frauds are either actual or constructive.
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fiduciary

Law
1. a person bound to act for another's benefit, as a trustee in relation to his beneficiary
2. 
a. having the nature of a trust
b. of or relating to a trust or trustee
References in periodicals archive ?
1991), started the expansion of fiduciary duties in the context of a limited partnership managed by a corporate general partner.
The most recent decisions (by judges in Delaware and several other relevant jurisdictions) hold that fiduciary duties are owed to the corporation that the director and officer is serving and do not change whether the corporation is solvent, approaching insolvency (described as the "zone of insolvency"), or insolvent.
Fiduciary duties are critical to the integrity of a remarkably wide variety of relationships and institutions.
In some states, a winning plaintiff may be awarded attorney's fees and even punitive damages for breaches of fiduciary duties.
The resolution of these questions required an assessment of the directors' statutory fiduciary duties in a change-of-control situation, and raised the question of the appropriate procedural interrelationship between these two key issues.
9) If a corporation has not statutorily elected close-corporation status and a dispute arises among shareholders, courts will consider the facts and circumstances surrounding the shareholders' relationships and may determine that fiduciary duties exist.
Many proposals currently under consideration would impose similar fiduciary duties on all investment advisors for all activities, not just for regulated mutual funds.
The trial judge also held that defendant had violated his fiduciary duties by failing to represent plaintiff with undivided loyalty and by neglecting to fully disclose all material information to plaintiff.
Considering the uncertain future of Social Security, the Secretary of Labor Elaine Chao, wants to improve workers health and retirement security by educating employers and service providers about their fiduciary duties under ERISA.
8) While some LLC statutes contain express mandatory fiduciary duties, (9) others, particularly the Delaware LLC statute, do not.