Fiduciary

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    Fiduciary Duty Essay

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    Fiduciary duty refers to a legal obligation to act purely in the interests of another party. The party that owes the duty is known as the fiduciary, while the party to whom the duty is owed is known as the principal. The fiduciary is not allowed to benefit from this relationship unless the principal expressly consents to it. In addition, the fiduciary should not have any conflict of interest with the principal. Furthermore, in cases where the fiduciary has several principals, the fiduciary should make sure that is there is no conflict of interest between the principals (Cassidy, 2006, pp. 219). The relationship between a director and a company is an example of a fiduciary duty. This paper examines the extent to which fiduciary duties can prevent directors from pursuing their own interests in a company. Directors have various duties to the company that prevent the directors from pursuing their own interests. The duty of loyalty is the most important fiduciary duty that acts as a defence for the company against unscrupulous directors. It is intended to address the issue of conflict of interest between the directors and the firm. Under this duty, the directors of a company are expected to act in the company’s…

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    After Obama ruled in favor of the new Department of Labor (DOL) fiduciary rule, financial planners will no longer have their own interests in earning high-commissions and fees over their clients. The new rule is to protect advisor’s clients by adding a sense of transparency by making sure the advisor is acting within the best interest of the client, by recommending the best investments at the lowest prices. Implementation of the new rule is set out to prevent the $17 billion a year in…

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    Fiduciary Duty Weese (2009) defines Fiduciary as a person or organization that has legal, financial responsibility for another organization (Weese, 2009, p. 390). Fiduciary duty is the highest standard of responsibility. The following paper will demonstrate the University of North Carolina at Pembroke’s (UNCP) fiduciary duties with recommendations. Leadership and responsibility begin at the top; the paper begins first identifying UNCP’s Board fiduciary duties followed by recommendations on how…

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    Part I Issues The issues concern the correctness of the finding of the majority in the Court of Appeal that there had not been a breach of fiduciary duty by the Respondent. In particular: a) whether the scope of the Respondent’s fiduciary obligations extended to the Appellant’s business venture and whether the Respondent breached his fiduciary obligation by failing to continue negotiations and subsequently receiving an unauthorised profit from his position. b) whether the majority was correct…

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    The agency theory (Jensen, 1976) is a presumption that explains the relationship between principals and agents in business. The agent represents the principal in a business transaction and is expected to represent the best interests of the principal without regard for self-interest. An agency relationship is fiduciary in nature, and the actions and words of an agent exchanged with a third party bind the principal. Agency theory is concerned with resolving problems that can exist in agency…

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    Did not have a conflict between her or his personal interest and the interest of the corporation” (Miller, 6-2b). B. Most courts will only apply the ‘business judgment” rule unless there is evidence of bad faith, fraud, or a clear breach of fiduciary duty. Such as if Homer, intentionally tries to make the bad decision to decrease the result of the profit, didn’t exercise care that a prudent person would (acted in gross negligence), or did not do what was the best interest for the corporate.…

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    Michel v. Polos Verdes Network Group, Inc., 67 Cal. Rptr. 3d 797, 802 (Ct. App. 2007). Additionally, “a mortgage broker acts in a fiduciary capacity that not only imposes upon him the duty of acting in the highest good faith toward his principal but also precludes the agent from obtaining any advantage over the principal in any transaction had by virtue of his agency.” Brewer v. Indymac Bank, 609 F. Supp. 2d 1104, 1119 (E.D. Cal 2009). From the above statements, it is clear that Mr.…

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    Eventually the corporation became involved in a legal suit: the corporation was hired to by a municipality to demolish the house of someone in prison. The homeowner alleged his lawnmower was stolen. The son was advised by counsel that a settlement would be much easier and cheaper in this situation. The father outright refused to settle. While the father was away on vacation, the song settled. Thereafter the son quit working for the corporation (disputed whether he quit or was fired) but retained…

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    O’Hagan, however, the Supreme Court allowed an expansion of liability that it had avoided under Chiarella. In particular, it permitted the misallocation theory of liability as the basis for a 10b-5 violation when the defendant did not owe any fiduciary duty to the corporation whose securities the defendant traded. Essentially, the duty to disclose requirement of Texas Gulf Sulphur was found to be met if the defendant owed a fiduciary duty to a third-party, and breached that duty by making use…

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    Eden Valley Growers (EGV)

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    favored small growers because it claimed to be a cooperative? Would the Development Council have looked down of EVG if the council knew small growers have to pay a sizable amount to become a member? Would the Development Council hypothesize that the misrepresentation was an intentional attempt to cover up any of the above issues. This program awards grants a rate of no more than $50,000 per farm. In essence, EVG used up the opportuning each member had to obtain a grant. EVG has a fiduciary…

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