Introduction to Fiduciaries and Fiduciary Law in Singapore
Fiduciaries and fiduciary law play a crucial role in governing the relationship between individuals and entities who owe fiduciary obligations.
In Singapore, the concept of fiduciary duty is taken seriously, and breaches of such duties are subject to legal remedies.
Overview of Fiduciaries and Fiduciary Law
Fiduciaries are individuals who owe fiduciary duties to others, such as company directors, trustees, or agents.
Fiduciary law refers to the legal framework that governs these relationships and the obligations that arise from them.
In Singapore, fiduciary law operates within the country’s legal system, which is based on common law.
The courts of Singapore uphold the fiduciary paradigm, which requires fiduciaries to act in good faith and in the best interests of their principals.
Fiduciaries have a duty of care towards their principals and must not engage in any transactions that may result in a conflict of interest.
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Sources of Law Governing Fiduciary Relationships in Singapore
The sources of law governing fiduciary relationships in Singapore include common law principles and statutory duties established in legislation such as the Companies Act.
The categories of fiduciaries vary and can include company directors, trustees, agents, and employees.
The legal analysis of breaches of fiduciary duties involves a causal inquiry to determine if the fiduciary has breached their obligations.
Additionally, a remedial inquiry is conducted to determine the appropriate compensation or remedy for the breach.
Key Features of Fiduciaries and Fiduciary Law
Key features of fiduciaries and fiduciary law in Singapore include the fiduciary relationship based on trust and the obligation for fiduciaries to act in the best interests of their principals.
Monetary compensation may be awarded to compensate for breaches of fiduciary duties.
Fiduciaries have fiduciary powers and must adhere to profit rules and fiduciary-dealing rules.
The trust estate is a fundamental concept in fiduciary law, and fiduciaries must exercise their powers and contractual discretion responsibly.
Fiduciaries and fiduciary law in Singapore provide a legal framework for establishing and governing relationships that involve fiduciary obligations.
Understanding the duties and responsibilities of fiduciaries is essential for ensuring trust, accountability, and fairness.
Key Takeaways
- Fiduciary Duties in Singapore:
- Fiduciaries, e.g., company directors, must act honestly and in the best interests of shareholders or beneficiaries.
- Duties and Responsibilities:
- Fiduciaries avoid conflicts, prioritize legal interests, and follow profit rules.
- When Fiduciary Duty Arises:
- Special relationships trigger duties, including avoiding conflicts and exercising power consistently.
- Breach of Fiduciary Duties:
- Breaches lead to compensatory damages, accounting for profits, and injunctive relief.
- Company Directors’ Fiduciary Obligations:
- Directors have legal duties, breaches may lead to compensatory damages.
- Legal System and Fiduciary Duty:
- Singapore’s legal system, based on common law, shapes fiduciary obligations.
- Undue Influence and Fiduciary Duty:
- Courts consider undue influence, emphasizing avoiding conflicts.
- Enforcement of Fiduciary Duties:
- Legal remedies include injunctive relief, damages, and specific performance.
- Case Law and Precedents:
- Precedents guide interpretations and provide clarity on obligations and remedies.
- Emerging Trends and Challenges:
- Fiduciary law evolves with trends, applying to new contexts; challenges include complex business practices.
Duties and Obligations of a Fiduciary in Singapore
A fiduciary is an individual or organization entrusted with a position of trust and responsibility, and their actions are required to be in the best interest of the person or entity they represent.
In Singapore, fiduciaries, such as company directors, owe fiduciary obligations to their shareholders, while trustees owe fiduciary duties to their beneficiaries.
Exploring Fiduciary Duties and Responsibilities
Fiduciary duties encompass a wide range of responsibilities that a fiduciary must perform.
Some of these include:
- Duties of a Fiduciary: Fiduciaries must act honestly, in good faith, and in the best interests of their beneficiaries or shareholders.
- Director’s Duties: Company directors have a duty to avoid conflicts of interest and to not profit from their position.
- Beneficiary’s Legal or Practical Interests: Fiduciaries must prioritize the legal or practical interests of their beneficiaries.
- Business Opportunity Belonging: Fiduciaries cannot take advantage of business opportunities that belong to their beneficiaries.
- No-Profit Rule: Fiduciaries cannot make a profit from their fiduciary position without full disclosure and consent.
- Custodial Stewardship Duty: Fiduciaries must take reasonable care of assets entrusted to them.
- Management Stewardship Duty: Fiduciaries must act with reasonable skill, care, and diligence in managing the affairs of the entity or individual they represent.
When Does a Fiduciary Duty Arise in Singapore?
A fiduciary duty arises when there is a special relationship between the fiduciary and the beneficiary.
Some situations that give rise to a fiduciary duty in Singapore include:
- Duty to Avoid a Conflict: Fiduciaries must avoid situations where their personal interest conflicts with their fiduciary duty.
- Unauthorised Approaches: Fiduciaries cannot make unauthorised approaches or transactions without proper consent.
- Exercise of Power: Fiduciaries must exercise their power in a manner consistent with their fiduciary duty.
- Undue Influence: Fiduciaries cannot exert undue influence over their beneficiaries.
- Breach of Fiduciary Duty: If a fiduciary breaches their duties, the affected party may seek a remedy for the breach, such as compensation or an injunction to prevent further harm.
Understanding fiduciary duties and obligations is crucial for both fiduciaries and beneficiaries in Singapore. These duties ensure that fiduciaries act responsibly and in the best interest of the parties they represent, fostering trust and confidence in the fiduciary relationship.
Breach of Fiduciary Duties: Consequences and Remedies
In Singapore, understanding fiduciary law is crucial for both individuals and businesses.
A fiduciary is an individual who owes fiduciary obligations to another party, typically arising from a fiduciary relationship such as that between a company director and shareholders.
Fiduciaries are expected to act in the best interests of the party they owe the duty to and must avoid any conflicts of interest.
Identifying Breaches of Fiduciary Duties in Singapore
If a fiduciary fails to uphold their duties, it constitutes a breach of fiduciary duties.
Some common examples include acting for two clients with conflicting interests, unauthorized use of confidential information, or engaging in self-dealing transactions.
In Singapore, a breach of fiduciary duty may result in various consequences:
- Damages: The party that suffered from the breach may be entitled to compensation for any loss or damage caused.
- Compensation Payable: The fiduciary may be required to pay profits earned as a result of the breach.
- Compensatory Damages: These are awarded to restore the injured party to the position they would have been in if the breach had not occurred.
It is worth noting that fiduciary duties and the remedies for a breach of such duties are defined under common law as well as specific statutes and regulations.
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Available Remedies for a Breach of Fiduciary Duties
When a breach of fiduciary duty occurs, the injured party may seek legal enforcement of such duties.
The remedies available in Singapore include:
- Compensatory Damages: These aim to compensate the injured party for the losses suffered due to the breach.
- Account of Profits: The fiduciary may be required to account for and surrender any profits made as a result of the breach.
- Injunctions: Courts can grant injunctions to prevent further breaches or require the fiduciary to fulfill their duties.
In practical terms, it is essential for parties in fiduciary relationships to be aware of their obligations and the potential consequences of breaching them.
Seeking legal advice and understanding the specific laws and regulations pertaining to fiduciary duties in Singapore is crucial for both fiduciaries and those who may suffer from breaches.
Fiduciary Relationship in Specific Contexts: Company Directors
The Fiduciary Obligations of Company Directors in Singapore
In Singapore, company directors hold a fiduciary duty towards the company and its shareholders.
This means that they have a legal obligation to act in the best interests of the company, avoid any conflicts of interest, and prioritize the financial well-being of the company above their personal interests.
Directors are expected to exercise good faith, honesty, and loyalty in their decision-making processes.
They cannot use their position to gain personal benefits or make decisions that would harm the company’s interests.
Boardman v Phipps is a notable case that highlighted the fiduciary duty of directors and the consequences for breaching it.
When a breach of fiduciary duties occurs, there are remedies available to address the issue.
The injured party can seek compensatory damages to recover any losses incurred as a result of the breach.
The Singapore High Court has made decisions in precedent cases such as John While Springs, clarifying the legal principles surrounding compensatory damages.
Actions to Take When a Company Director Breaches Their Fiduciary Duties
When a breach of fiduciary duty occurs, it is essential to take appropriate actions to protect the interests of the company and its stakeholders.
This breach gives rise to a fiduciary duty claim, and legal recourse can be pursued to seek remedies.
The Singapore High Court has established that directors owe a fiduciary duty to act in the best interests of the company, exercise management stewardship duties diligently, and avoid self-dealing or related party transactions.
Breaches of these duties can result in legal consequences.
One recourse available when a breach occurs is to seek compensatory damages.
The injured party can bring a legal action against the director to recover losses suffered as a result of the breach.
The court will consider the specific circumstances of the case and the extent of the damage caused.
Overall, fiduciary duties are crucial in maintaining trust and ensuring that company directors act in the best interests of the company and its stakeholders.
Understanding the obligations and taking appropriate actions when breaches occur is essential for protecting the interests of all parties involved.
Legal Aspects of Fiduciary Duty in Singapore
Common Law Legal System in Singapore
The legal system in Singapore is based on common law, which means that decisions made by courts in previous cases serve as legal precedent for future cases.
In the context of fiduciary duty, this means that the courts will look to previous cases to determine the obligations and remedies available to parties involved in a fiduciary relationship.
There are two approaches that the Singapore courts have taken when dealing with breach of fiduciary duty cases: the strict approach and the burden-shifting approach.
The strict approach places the burden of proof on the fiduciary to show that their actions were not a breach of their duty.
On the other hand, the burden-shifting approach requires the fiduciary to first establish a valid basis for their actions, and then the burden shifts to the plaintiff to prove that the fiduciary breached their duty.
Some notable cases in Singapore’s legal system regarding fiduciary duty include Kumar Rai v Kumar Rai (2022) and West Building Society v Mothew.
These cases have provided guidance on the causal and remedial inquiries that courts undertake when determining compensatory damages for a breach of fiduciary duty.
Undue Influence and Fiduciary Duty
In Singapore, the concept of undue influence is closely linked to fiduciary duty.
A fiduciary has a duty to avoid any potential conflict of interest and must act in the best interests of the party they are representing.
This was emphasized in the case of West Building Society v Mothew, where Lord Browne-Wilkinson highlighted that a fiduciary cannot profit from their position.
When assessing a breach of fiduciary duty, the courts undertake a composite inquiry, considering both common law damages and equitable principles.
The courts will inquire into whether a fiduciary took advantage of an opportunity belonging to the company or whether they acted in the best interests of the company.
The burden of proving a breach of fiduciary duty rests on the party alleging the breach.
Legal Enforcement of Fiduciary Duties
In Singapore, legal enforcement of fiduciary duties can be pursued through compensatory damages.
The party alleging a breach of fiduciary duty must show that the fiduciary had the authority to act on behalf of the party, and that the fiduciary breached their legal or practical obligations.
There are different types of fiduciaries in Singapore, including company directors, trustees, and agents.
These fiduciaries are obligated to act in the best interests of the party they represent.
When a fiduciary breaches their duty, compensatory damages may be sought to compensate for any loss suffered as a result of the breach.
Practical Considerations in Fiduciary Relationships
Fiduciary relationships are based on trust and confidence, and they can exist between various parties such as directors, shareholders, and third parties providing services.
In Singapore, the courts recognize the fiduciary relationship between directors and the company they serve.
This means that directors are obligated to act in the best interests of the company and avoid conflicts of interest.
When assessing a breach of fiduciary duty, the courts will consider the financial interests of the fiduciary and whether they have breached their duty.
Compensatory damages may be awarded to the aggrieved party if a breach of fiduciary duty is established.
Directors are entrusted with the responsibility of managing and administering their companies in the best interests of their shareholders.
As such, they occupy a position of trust and owe a fiduciary duty to the company and its stakeholders.
When a breach of this fiduciary duty occurs, it signifies a betrayal of the fundamental obligations undertaken by directors to act honestly, with loyalty, and in good faith.
A breach of fiduciary duty can manifest in various ways, such as misappropriation of company funds or assets, secret profits, or competing with the company.
The consequences of such breaches are severe, as they can lead to significant financial losses and reputational damage for the company.
The fiduciary must remember that the beneficiary to whom the fiduciary duty is owed is not limited to the company alone, but also includes shareholders, creditors, and other stakeholders who rely on the director’s actions to protect their interests.
It is crucial to understand that any ill-gotten property acquired by the fiduciary through their breach of duty belongs rightfully to the company, not the director.
Failing to rectify such breaches would give rise to serious legal ramifications and potential liability for the fiduciary.
In order to maintain the integrity of corporate governance, directors must always act in the best interests of the company and fulfill their fiduciary obligations with utmost diligence and transparency.
Decisions of Precedent Cases in Fiduciary Law
Decisions in precedent cases play a crucial role in shaping the legal landscape of fiduciary law in Singapore.
Precedent cases from the superior courts in Singapore are binding on lower courts and provide guidance on the obligations and limitations of fiduciaries.
For example, in the case of Boardman v Phipps, the courts ruled that a fiduciary cannot enter into transactions that are in conflict with their fiduciary duties.
These decisions help establish the boundaries of fiduciary obligations and provide clarity for both fiduciaries and those who seek to enforce their rights.
Impact of Case Law on Fiduciary Relationships
Case law has a significant impact on fiduciary relationships in Singapore.
It clarifies the existence and scope of fiduciary duties and establishes remedies for breaches of these duties.
For instance, in the case of West Building Society v Mothew, the court held that a fiduciary’s ill-gotten profits must be returned and that equitable compensation may be awarded to the aggrieved party.
These remedies aim to restore parties to the position they would have been in had the breach not occurred.
The legal aspects of fiduciary duty in Singapore are governed by the common law legal system, which relies on precedent cases to establish obligations and remedies.
Breach of fiduciary duty can lead to legal enforcement and compensatory damages for the aggrieved party.
The decisions in precedent cases shape the fiduciary landscape and provide guidance for both fiduciaries and those seeking to enforce their rights.
Fiduciaries and Fiduciary Law Beneficiary
A fiduciary to the beneficiary is a person or entity that holds a position of trust and confidence and is obligated to act for or on behalf of another person, known as the beneficiary.
The fiduciary has a legal duty to act in the best interests of the beneficiary and must not use their position for personal gain.
Any breach of his duty, whether intentional or negligent, is considered a serious matter and can have significant legal consequences.
When a fiduciary breaches their duty, they are essentially betraying the trust that has been placed in them and undermining the relationship of confidence between themselves and the beneficiary.
This breach can take many forms, such as misappropriation of funds, self-dealing, or failure to carry out their responsibilities diligently and competently.
Regardless of the specific nature of the breach, the fiduciary is held accountable for their actions.
The beneficiary has the right to take legal action against the fiduciary in order to seek redress for any harm or losses suffered as a result of the breach.
The fiduciary may be required to compensate the beneficiary for any financial losses incurred, return any unlawfully acquired assets, or even face criminal charges in certain circumstances.
It is important for both fiduciaries and beneficiaries to understand the gravity of the fiduciary relationship and their respective roles and responsibilities within it.
Fiduciaries must constantly be aware of their duty to act solely in the best interests of the beneficiary and must avoid any conflicts of interest that could compromise their ability to fulfill that duty.
Similarly, beneficiaries must be vigilant in monitoring the actions of the fiduciary and taking action if they suspect any breach of duty.
The fiduciary relationship requires the utmost trust and confidence, and any breach of that trust can have far-reaching consequences for all parties involved.
Enforcement of Fiduciary Duties: Legal and Practical Considerations
In Singapore, fiduciary duties are significant and are imposed on individuals who are in a fiduciary relationship.
This includes company directors, trustees, agents, and professionals such as lawyers and accountants.
Understanding the legal and practical aspects of enforcing fiduciary duties is paramount.
Legal Remedies for a Breach of Fiduciary Duties:
When a fiduciary duty is breached, there are legal remedies available to the aggrieved party.
These can include seeking injunctive relief to prevent further breaches, claiming damages for any losses suffered as a result of the breach, or seeking specific performance to enforce the fiduciary’s obligations.
Sources of Law and Duties of a Fiduciary:
In Singapore, fiduciary duties primarily arise from common law principles and also from statutes such as the Companies Act and the Trustee Act.
Fiduciaries owe fiduciary obligations such as loyalty, good faith, and the duty to avoid conflicts of interest
Practical Considerations:
Enforcement of fiduciary duties involves careful consideration of the practical aspects.
It is important to gather evidence of the breach, seek legal advice to understand the available remedies, and assess the cost-effectiveness of pursuing legal action.
Alternative dispute resolution methods, like mediation or negotiation, may be considered to resolve the dispute without the need for litigation.
The Bottom Line:
Understanding the enforcement of fiduciary duties is crucial to protect the interests of individuals in a fiduciary relationship.
It is advisable to consult with legal experts who specialize in fiduciary law to ensure compliance and navigate the legal complexities surrounding fiduciary obligations in Singapore.
Case Law and Precedents in Fiduciary Law
In Singapore, the concept of fiduciaries and fiduciary law is governed by a combination of common law principles and statutory provisions.
When it comes to the breach of fiduciary duties and the remedies available, case law and precedents play a crucial role in providing guidance and establishing legal principles.
One key aspect of fiduciary law is understanding the duties of a fiduciary and how they arise.
A fiduciary duty is breached when a fiduciary fails to act in the best interests of the party to whom they owe fiduciary obligations.
This breach can occur in various contexts, such as in relationships between company directors and shareholders or between professionals and their clients.
When a fiduciary duty is breached, the injured party can seek a remedy for the breach.
The specific remedy available will depend on the circumstances of the case and the nature of the breach.
Some common remedies include damages, injunctions, account of profits, and rescission of contracts.
In Singapore, case law and precedents have provided valuable guidance on how fiduciary duties are interpreted and applied.
Courts have analyzed various factors in determining whether a fiduciary duty has been breached, such as the fiduciary’s conduct, their obligations, and any conflicts of interest involved.
Understanding case law and precedents in fiduciary law is essential for both fiduciaries and the parties they owe a duty to.
It helps clarify the legal standards and expectations, ensuring fairness, and accountability in fiduciary relationships.
By studying previous cases and the principles established, individuals can better navigate their roles as fiduciaries and protect their rights in the event of a breach or dispute.
It also enables parties to assert their rights and seek appropriate remedies when they believe a breach of fiduciary duty has occurred.
Emerging Trends and Challenges in Fiduciary Law
Fiduciary law in Singapore has undergone significant developments over the years.
As fiduciaries, individuals such as company directors owe fiduciary duties to their beneficiaries, and breaches of these duties can lead to serious consequences.
One important aspect of fiduciary law is determining the remedies available for a breach of fiduciary duties.
Remedies can vary depending on the circumstances, but they generally aim to compensate the affected party for any losses suffered as a result of the breach.
Common remedies include damages, injunctions, and accounting for profits.
In Singapore, the duties of a fiduciary are derived from both common law and legislation.
The primary sources of law in relation to fiduciary duties are the Companies Act, the Trustee Act, and the common law principles developed through court decisions.
It is essential to understand when fiduciary duties arise.
Fiduciary obligations typically arise in situations where a person has discretionary power or control over another person’s affairs and is expected to act in the best interests of the beneficiary.
However, challenges in fiduciary law can arise, especially as business practices and relationships become more complex.
Emerging trends include the expanding application of fiduciary duties to new contexts and the evolving expectations of fiduciaries in light of changing societal norms.
Navigating fiduciary law requires a thorough understanding of the obligations and responsibilities involved.
As the legal landscape continues to evolve, it is crucial for fiduciaries to stay updated on emerging trends and challenges to ensure they fulfill their duties effectively.
PTE Ltd v IRB Law is a landmark case that sheds light on the fiduciary duties of a principal and the position of a fiduciary.
In this case, the court firmly established that a fiduciary is someone who holds a position of trust and confidence and is required to act in the best interests of the principal.
The court emphasized that a fiduciary has a duty to avoid unauthorized profits and to act solely for the benefit of their principal.
Any actions taken by the fiduciary that would otherwise be a breach of this duty are scrutinized and may result in legal consequences.
It is crucial for fiduciaries to understand the gravity of their position and the responsibilities that come with it.
However, it is important to note that the duty of a fiduciary can be waived or modified if expressly agreed upon by both parties involved.
This highlights the need for a clear and transparent agreement between the principal and the fiduciary, outlining the scope of the fiduciary’s duties and any exemptions or limitations agreed upon.
Overall, the case of PTE Ltd v. IRB Law serves as a reminder of the high standards expected of fiduciaries and their obligation to act in the best interests of their principals.
Conclusion
Recap of key concepts in Singapore fiduciary law
In conclusion, understanding the principles of fiduciary law in Singapore is crucial in various legal and commercial contexts.
Key concepts that have been discussed include the relationship of trust between a fiduciary and beneficiary, the no-conflict and no-profit rules, and the fiduciary’s duty to act in the best interests of the beneficiary.
The fiduciary is expected to avoid any unauthorized profits and to act honestly and diligently in handling the trust fund.
Singapore’s fiduciary law is primarily based on common law principles and statutory provisions.
The basic principles have been developed through jurisprudence and court decisions.
The orthodox approach requires a fiduciary to avoid conflicts of interest and to prioritize the interests of the beneficiary over their own.
It is important to note that fiduciary duties can also apply to corporate entities, known as corporate fiduciaries.
In such cases, directors and officers have a duty to act in the best interests of the company and its shareholders.
Breaches of fiduciary duties can result in legal consequences, including compensation for breaches and the disgorgement of any unauthorized profits.
Importance of upholding fiduciary duties in various contexts
Upholding fiduciary duties is essential to maintaining trust and integrity in commercial transactions and professional relationships.
The fiduciary relationship imposes a higher standard of conduct, requiring the fiduciary to act with utmost good faith, loyalty, and honesty.
By doing so, the fiduciary ensures the protection of the beneficiary’s interests and prevents any potential conflicts of interest.
In the context of commercial trusts, fiduciary duties play a pivotal role in safeguarding the trust assets and ensuring that they are used for their intended purpose.
Fiduciaries must exercise their discretion responsibly and in a manner that benefits the beneficiaries.
Furthermore, fiduciary duties are relevant in various professional relationships, such as lawyers, trustees, and financial advisors.
These professionals have a duty to act in the best interests of their clients, providing them with competent and unbiased advice.
In summary, fiduciary law in Singapore is a fundamental aspect of legal and commercial relationships.
The principles of fiduciary duties and obligations ensure trust, integrity, and accountability in various contexts.
Understanding and upholding these duties are essential for maintaining a fair and just legal system and promoting the interests of beneficiaries and clients.
Frequently Asked Questions
What are fiduciaries and fiduciary law?
Fiduciaries are individuals who owe fiduciary duties to others, typically referred to as beneficiaries. Fiduciary law is a branch of law that governs the relationships and obligations between fiduciaries and beneficiaries.
What are the duties of a fiduciary?
Fiduciaries have a duty of loyalty and a duty of care towards their beneficiaries. The duty of loyalty requires fiduciaries to act in the best interests of the beneficiaries and avoid conflicts of interest. The duty of care requires fiduciaries to exercise reasonable care, skill, and diligence in managing the affairs of the beneficiaries.
What are the sources of law for fiduciaries?
Fiduciary law is derived from both common law principles and statutes. Common law principles are developed through court decisions over time, while statutes may specifically address fiduciary duties in certain contexts.
How does fiduciary duty arise?
Fiduciary duty arises when a person or entity assumes a position of trust and confidence with respect to another party. This can occur through a formal appointment or by virtue of a relationship that is recognized by law as giving rise to fiduciary obligations.
What is a fiduciary obligation?
A fiduciary obligation is a legal duty that a fiduciary owes to their beneficiaries. It encompasses the duty of loyalty, the duty of care, and other equitable duties that may arise depending on the specific circumstances.
What happens when a fiduciary duty is breached | remedy for a breach?
When a fiduciary duty is breached, the fiduciary may be held liable for any losses or damages suffered by the beneficiaries. The beneficiaries may seek a remedy for a breach of fiduciary duty through legal proceedings.
Who can owe fiduciary obligations?
Fiduciary obligations can be owed by various individuals or entities, such as directors of a company, trustees, agents, and professionals like lawyers and financial advisors. The specific circumstances and relationships determine whether fiduciary obligations exist.
What is the significance of the no-conflict rule and no-profit rule for fiduciaries?
The no-conflict rule requires fiduciaries to avoid situations where their personal interests conflict with their duty to the beneficiaries. The no-profit rule prohibits fiduciaries from making unauthorized profits from their fiduciary position. These rules help ensure that fiduciaries act solely in the best interests of the beneficiaries.
What are some examples of breaches of fiduciary duty?
Breaches of fiduciary duty can include misappropriation of funds, self-dealing, improper use of information, failure to disclose conflicts of interest, and neglecting the duty of care. Any action or omission that violates the fiduciary obligations can be considered a breach.
Can fiduciaries be compensated for losses incurred in the course of their duties?
Yes, fiduciaries may be entitled to compensation for losses that are incurred in the proper exercise of their duties. However, this compensation is subject to the equitable principles and trust accounting principles governing fiduciary relationships.
What is the evidential burden in cases involving breaches of fiduciary duty?
In cases involving breaches of fiduciary duty, the evidential burden generally lies with the plaintiff, who needs to provide sufficient evidence to establish that the fiduciary breached their duties. Once the breach is established, the burden may shift to the fiduciary to justify their actions or defend against the allegations.
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