Executives, directors, officers, and other corporate agents have a fiduciary duty to their company. In the simplest terms, a fiduciary duty is a legal obligation that requires one to put the interests of another party above their personal interests. This duty comes in many different specific forms. For corporate officers, one important form of fiduciary duty is known as the corporate opportunity doctrine. Essentially, this doctrine is an application of the fiduciary of duty of loyalty. More specifically, it means that corporate agents are not allowed to take any business opportunity for themselves that could have benefited the corporation. In the event that your business interests have been negatively affected by a corporate officer's violation of the corporate opportunity doctrine, please reach out to an experienced San Jose business litigation attorney today to discuss your legal options.
The term "fiduciary duty" is technical in nature, but in simpler terms, it covers the expectations between business partners to do the right thing when it comes to the working relationship. There are common duties associated with a fiduciary relationship which include duties of confidentiality, loyalty, and good faith.