Found this excerpt while going through an equity and trust subject guide for UOL on breach of fiduciary duties: In exercising these discretions, fiduciaries must think only of their principals’ best interests, not their own, nor the interests of any third parties. They are therefore prohibited from exercising their discretions in ways that manifest conflicts of interests. So a trustee should not invest the trust rights in her own company because her company needs capital; an agent should not enter into a contract of employment on behalf of her principal with her brother-in-law because the brother-in-law needs a job; a company director should not buy raw materials for the company from her own business. Because of this, the basic rule governing fiduciary obligations is the ‘no conflict’ rule. A fiduciary must not place herself in situations where her own interests conflict with those of her principal. Are not the people principals to the Government and Parliament, being fiduciaries? Why then do these fiduciaries dabble in conflict of interest against the benefit of the people? Lacking simple humanity or morality? I wonder.
Posted on: Wed, 09 Apr 2014 10:18:27 +0000
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