Partners Breech Of Fiduciary Duty To Other Partners
Partners are defined as two or more people engaged in a common kind of business for profit making. In partnership the partners are defined as fiduciaries to each other. |
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A fiduciary is a person who acts in goodwill or for the good of the other person. This would mean that the partners owe each other the lawful responsibility of good faith for the business and other basic duties related to the business.
Every matter relating to the business stands as a partnership and therefore, the partners have a fiduciary responsibility to each other. The definition of partnership in business is similar to the definition of a fiduciary which encumbers all responsibilities such as loyalty, confidence and trust. Whether a person likes it or not, in a partnership he always has to maintain and act with these responsibilities. These moral values have been imposed by law on partners who are in a business partnership. In case any of the partners refrain from their duties and act unlawfully by breaking trust or loyalty towards the business and the other partners, then it would amount to partners' breach of fiduciary duty to other partners. This could be anything related to the business like taking advantage of each other, misrepresentation, cheating, embezzlement of funds or anything of similar nature.
A breach of fiduciary duty among partners might also occur when there is a conflict of interest or duty between the partners or if one fiduciary is being taken advantage of by the other fiduciary or fiduciaries.
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Partners Breech Of Fiduciary Duty To Other Partners
