Marmot Media's Fiduciary Theory

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A fiduciary duty is an obligation to act with the utmost good faith for the benefit of another party. The one who acts on behalf of the other is called a fiduciary. The party to whom the fiduciary is alluded to is referred to as the principal. Fiduciary relationships emerge by virtue of the status of the parties of the relationship for example director and company, agent and principal. Fiduciary relationships are also fact based, arising in particular circumstances and factors which may tend to indicate such a relationship. It is usually to the court's discretion to establish a fiduciary relationship between parties. The two main duties a fiduciary owes to its principal are the no conflict rule and the no-profit rule. A fiduciary was defined…show more content…
In the case of Edgar, Cathy can be established as the fiduciary and Marmot the principle. The differentiating characteristic of a fiduciary is the duty of loyalty. This principle was established in Boardman v Phipps . It illustrates precisely how the courts strictly interprets the breach of the duty of loyalty. In the case of Motthew Lord Millet J also said that, "the principal is entitled to the single-minded loyalty of his fiduciary. This core liability has several facets. A fiduciary must act in good faith; he must not make a profit out of his trust; he must not place himself in a position where his duty and his interest may conflict; he may not act for his own benefit or the benefit of a third person without the informed consent of his…show more content…
She sets up DC Ltd with Duncan with the information she had acquired when she was a director of Marmot Media. Provided she had not received an opportunity to be a director of Marmot Media she would not have managed to set up the company. Moreover, Cathy had learned how to produce television series when she was a director of Marmot. It was held in the case of Regal Hastings v Gulliver that "directors are liable to account for activities outside the company if (i) what the directors did was so similar with the issues of the organization that it can appropriately be said to have been done over the span of their administration as a director and in usage of their opportunities and exceptional learning as a director. (ii) what they did resulted in profit for
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