Understanding fiduciary duties is vital to continued success in business Steven R Pietro Business Owner
Steven R Pietro Business Owner – In the professional world, a fiduciary is a representative, advisor, or director who has been enlisted by a business or other organization to control finances, often in addition to managing one or more other areas of operations. These wider responsibilities can include, for example, controlling access to any personal information held by an organization.
Due to the responsibilities placed upon their shoulders, fiduciaries generally operate in a position of considerable trust. They must have a significant duty of care toward the business or organization in question. That’s according to corporate lawyer Steven R Pietro Business Owner, a practicing attorney based in Florida. “A fiduciary must always act in what’s called “good faith and fair dealing,'” Steven R Pietro suggests.
Duty of Care
Steven R Pietro Business Owner goes on to explain that breaching this duty of care. This means acting outside considered good faith or fair dealing, can have serious repercussions. These include financial terms and from a legal standpoint. “A breach of fiduciary duties can cause a business to suffer substantial financial losses, for example,” reveals the corporate lawyer.
In business, fiduciaries may include real estate brokers, investment advisors, and attorneys. “Individuals in any of these professions or positions have a duty to act in the best interests of whoever they’re working for,” says Pietro, further pointing out that directors and corporate board members also often shoulder a fiduciary duty, particularly to the shareholders of a business or organization.
Pietro continues, “One vital aspect of a fiduciary’s duties is to always, always act in utmost good faith.”
Trust and Reliance
This, he says, is largely based upon trust and reliance. At the beginning of any relationship between a business or organization and a fiduciary. The fiduciary must agree to exercise his or her absolute discretion at all times. This is in addition to always fully utilizing their expertise in dealing with any and all of the business or organization’s matters. According to the corporate lawyer.
“A fiduciary,” he adds, “must never, ever act in any manner which may serve to prove detrimental to a business or organization’s best interests.”
The focus of any fiduciary, placed squarely upon exercising his and her ability. This includes diligence, and care in delivering what’s in the best interests of the business. According to Steven R Pietro Business Owner if a fiduciary fails to do so,” Pietro goes on to explain, “thats considered that a breach of duty has occurred.”
“Where a breach of duty becomes witnessed,” adds Steven R Pietro Business Owner. Wrapping up, “a business or organization may subsequently look to take legal action against the individual in question, with a view to recovering any resulting losses.”