Duties and consequences

One common defense technique is for the fiduciary to claim he is protected by the business judgement rule. Consequences of a Breach of Fiduciary Duty When a fiduciary has been accused of breaching a fiduciary duty, those who were harmed by the breach can take legal action against the fiduciary.

Duties and consequences

The consequences of the penalty imposed upon Directors for a breach of their fiduciary directors is usually in damages representative of the director loss and potentially the prospective loss. For example, shareholders can bring proceedings under the Companies Act which derive their rights to sue that director in his personal capacity on behalf of the Company.

If the fiduciary is not able to successfully defend himself and it is determined that a breach has in fact occurred, there are different potential remedies. These are known as derivative claims. In cases like this, where there is a great deal at risk, it is essential that you work with the right firm; it could mean the difference between winning and losing a case.

A fiduciary can defend himself against accusations of a breach.

consequences of breach of shareholders agreement
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Consequences of a Breach of a Directors Fiduciary Duties