Breaches of Fiduciary Duty

Once a business partnership is formed, each partner owes certain fiduciary duties to the other partners and to the business itself. Regardless of whether you form a corporation, LLC, LLP, or another type of legal entity, any partnership agreement between individuals or businesses implies the fiduciary duties of loyalty, obedience, care, and disclosure.

If one partner intentionally or negligently breaches any of their duties, the other business partners must act – either through mediation, arbitration, or litigation.Usually, a breach of fiduciary duty happens when a business partner puts their own interests above the best interests of the company, often with harmful results to the company. A good legal team can help protect your business against these types of breaches.