Most Common Breaches of Fiduciary Duties
There are literally hundreds of ways in which fiduciaries may breach to duties to their special status. Among the most common breaches of fiduciary duty include:
- Self Dealing (i.e., through conflict of interest business transactions or reaping of personal gain or personal economic profits).
- Usurpation of business or corporate opportunity.
- Misappropriation of corporate funds or corporate property.
- Corporate neglect, business imprudence, of lack of necessary business skill and experience.
- Failure to act in the business owners’, shareholders’, or members’ best interest.
- Misrepresentation or omission as to a statement of fact (e.g., corporate financial conditions or business statement of affairs).
- Breach of corporate fiduciary duty (e.g., to provide accurate corporate information).
- Misuse of confidential information or breach of confidentiality.
- Misuse of superior knowledge.
- Failure to disclose.
- Corporate aiding and abetting or acting in concert with another.
- Rendering inappropriate advice or counsel (e.g., bad business ore corporate investment advice).
- Misuse of superior or influential position.