Fiduciary in UK Law
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Bristol and West Building Society v Mothew
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Equitable compensation for breach of the duty of skill and care resembles common law damages in that it is awarded by way of compensation to the plaintiff for his loss. There is no reason in principle why the common law rules of causation, remoteness of damage and measure of damages should not be applied by analogy in such a case.
A fiduciary is someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. The distinguishing obligation of a fiduciary is the obligation of loyalty.
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Bristol and West Building Society v Mothew
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The nature of the obligation determines the nature of the breach. The various obligations of a fiduciary merely reflect different aspects of his core duties of loyalty and fidelity. Breach of fiduciary obligation, therefore, connotes disloyalty or infidelity. Mere incompetence is not enough. A servant who loyally does his incompetent best for his master is not unfaithful and is not guilty of a breach of fiduciary duty.
It is at this point, in my judgment, that the Society's argument runs into difficulty. A fiduciary who acts for two principals with potentially conflicting interests without the informed consent of both is in breach of the obligation of undivided loyalty; he puts himself in a position where his duty to one principal may conflict with his duty to the other: see Clark Boyce v Mouat [1994] 1 AC 428 and the cases there cited. This is sometimes described as "the double employment rule".
Conduct which is in breach of this duty need not be dishonest but it must be intentional. An unconscious omission which happens to benefit one principal at the expense of the other does not constitute a breach of fiduciary duty, though it may constitute a breach of the duty of skill and care.
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Arklow Investments Ltd and Another v I.D. MacLean
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In the present context, the concept encaptures a situation where one person is in a relationship with another which gives rise to a legitimate expectation, which equity will recognise, that the fiduciary will not utilise his or her position in such a way which is adverse to the interests of the principal. The existence and the extent of the duty will be governed by the particular circumstances.
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Gwembe Valley Development Company Ltd v Koshy and Another
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They arose directly out of the transaction which gave rise to those profits, and the circumstances in which it was made. The fact that Mr Koshy was in a pre-existing fiduciary relationship with the company was not enough, by itself, to bring the case within class 1, any more than it was in Taylor v Davies.
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Does the Fiduciary Bell Toll?
The Law Commission has recently examined fiduciary relations and securities regulation. The purpose of this paper is a re‐examination of some of the questions posed in the Consultation Paper (No. 1...
- Limited Liability Partnerships and Fiduciary Duties
- The Employment Relationship and Fiduciary Obligations
- Fiduciary Government: Decentring Property and Taxpayers' Interests
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Employment News: fiduciary duties, NICs, jurisdiction
Battle Royal – handling of boardroom dispute was repudiatory breach - The High Court decision in Stobart Group Ltd v Tinkler explores the extent of a director's duties in the context of a boardr...
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Directors' fiduciary duties to shareholders
Most cases which come before the courts in connection with the sale and purchase of a company are brought by buyers against sellers. However, a recent High Court case looked at the sale and purchas...
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UK Investment Consultants and Fiduciary Management Services Under Investigation
The UK competition regulator, the Competition and Markets Authority (CMA), will be conducting in-depth investigations of investment consultancy and fiduciary management services after the Financial...
- Do Experts Owe A Fiduciary Duty To Clients?
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Chapter CG42030
......Section 6(3) then says that any gains charged to Corporation Tax are not to be charged to Capital Gains Tax. Acting in fiduciary capacity. The only time it is appropriate to make an assessment to Capital Gains Tax on a company is when . the company acts in a fiduciary ......
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Chapter CTM61515
......The meaning of ‘relevant person’ is defined in CTA10/S455 (6) as:. an individual, or. a company which is acting in a fiduciary or representative capacity. The singular term ‘individual’ also encompasses ‘individuals’, (Section 6 Interpretation Act 1978). Equally ......
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Chapter IHTM14394
......This is not of itself regarded as a reservation of benefit. The spouses or civil partners hold the property in a fiduciary capacity only and are required to deal with it in accordance with their fiduciary duties. The position is the same even if the donor and spouse or ......
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Chapter TSEM6243
......But he cannot do what he likes with the property. As a trustee he holds the assets in a fiduciary capacity. This means he must exercise rights and powers in good faith for the benefit of beneficiaries. The trust property does not pass to the ......