What is a directors fiduciary duty?
A person with a fiduciary duty is a person entrusted with power or property with the understanding that the person is working for the benefit of the individual who gave them that trust. In public corporations, where directors are elected by the shareholders, directors have a fiduciary responsibility to shareholders to work in the best interests of shareholders and for the benefit of shareholders – and not in the best interests of individual directors or managers. The appointing of directors by other directors or management to serve in a corporation that has public ownership, can produce a confusion and conflict of duties.
