A breach of fiduciary duty by a company director occurs when a director fails to act in the company's best interests, such as by using company property or opportunities for personal gain, failing to disclose a conflict of interest, or acting beyond their authority. Directors owe these duties under both common law and the Companies Act, and breaches can expose them to personal liability. Companies, or affected shareholders on the company's behalf, can bring a claim to recover losses caused by the breach.
Quick Question
What Is a Breach of Fiduciary Duty by a Company Director?
The short answer
Quick answer
A breach of fiduciary duty by a company director occurs when a director fails to act in the company's best interests, such as by using company property or opportunities for personal gain, failing to disclose a conflict of interest, or acting beyond their authority.
General information only. This answer does not constitute legal advice. The appropriate response depends on the facts and circumstances of each matter.
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