# Fiduciary duty

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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](https://ecosystem.samcarlton.com/board-of-directors) and officers owe this duty to the [corporation](https://ecosystem.samcarlton.com/c-corp) 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](https://ecosystem.samcarlton.com/board-of-directors) about the conflict and does not vote on the contract.

## Connects to (5)

- [Board of directors](https://ecosystem.samcarlton.com/board-of-directors): The group that a corporation's shareholders elect to oversee the company.
- [C-corp](https://ecosystem.samcarlton.com/c-corp): C corporation.
- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.
- [Exit](https://ecosystem.samcarlton.com/exit): The moment when founders and investors can turn their shares into cash.
- [Techlahoma board](https://ecosystem.samcarlton.com/techlahoma-board): The volunteer board that, with staff, runs the Techlahoma Foundation through the year.

> 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.

Map view: https://ecosystem.samcarlton.com/fiduciary-duty