Fiduciary duty

Also called: fiduciary, fiduciary duties, duty of care, duty of loyalty, fiduciary responsibility

A legal duty to act in someone else's best interest and not your own. A company's directors and officers owe this duty to the corporation and its shareholders.

For example: A director learns that a company she partly owns wants to sell services to the startup. She tells the board about the conflict and does not vote on the contract.

Connects to 5

Board of directors Concept
C-corp Concept
Equity Concept
Exit Concept
Techlahoma board Organization, nonprofit

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.