Breach of Fiduciary Duty in Business
10
What are Each Partner’s Duties to Each Other and The Partnership?
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When people decide to enter into a professional relationship, they know that the agreement will create certain rights and obligations with one another. If this relationship is a business, the partners expect each other not engage in any behavior that somehow damages or injures the company. Partners must only make decisions that benefit the business. If the partner violates this trust, he or she may be liable for a breach of the fiduciary duties that they owe to the company or others involved with the business. Individuals that may owe fiduciary duties to the company include partners, co-owners, officers, directors, employees and shareholders, as well as anyone else responsible for making decisions concerning the operation of the business. In business disputes, sometimes the only answer is to get a receiver appointed by the Court. Find out how here! For immediate help with your business legal needs, call us today (714) 505-3000 or toll free (866) 237-8129! Or email our business law department at [email protected] For more information on Irvine and Orange County’s business and corporate law firm, visit www.bc-llp.com Also, visit us on Google Plus: https://plus.google.com/+BrownCharbonneauLLPIrvine/about
Transcript of Breach of Fiduciary Duty in Business
What are Each Partner’s Duties to Each Other and
The Partnership?
Duties cannot be waived
Breach entitles other to a remedy
Fiduciary duties owed to partners
Duty of Good Faith
Duty of Obedience
Duty of Loyalty
Duty of Care
& Fair Dealing Faith
Duty of Care
ü No grossly negligent acts ü No reckless conduct ü No intentional misconduct ü No knowing violations of law
Duty of q Account to the partnership
q Hold as trustee property,
profits, and benefits q Refrain from dealing
adversely to the partnership q Refrain from competing
OBEDIENCE
duty to act consistent with partnership’s business purpose and mission duty to guide and oversee business to operate in accordance with purpose and mission
Duty of Good Faith & Fair Dealing
q Can’t take unfair advantageq Can’t enjoy greater rightsq Can’t obtain secret profitq Can’t obtain undue benefit
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Paula Reno at [email protected] Gina Michel at [email protected]
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