A “Fiduciary” is an individual that owes the highest degree of loyalty and honesty to another person. A fiduciary must put the interest of the person to which they owe the duty above their own interest. Not only does Texas law require the highest degree of loyalty from a fiduciary but it also imposes severe penalties against those that violate their fiduciary duties. Not only are the penalties severe for violation of fiduciary duties severe but they are also some of the easiest to violate. Even an unintentional violation can result in serious sanctions.
There are many specific things that a fiduciary can not do. For example, a fiduciary must act with the utmost integrity while they perform their duty. A fiduciary must take the utmost care in following all the professional standards of their profession while ensuring that the beneficiary receives the most protection and information possible. A fiduciary is always required to act in the interest of their principal and must always provide full disclosure to avoid any potential misrepresentations or fraud. Also, a fiduciary must always place the interests of their principal ahead of their own. A fiduciary can never perform any action that might be considered against the interests of the beneficiary without getting the full informed consent of their beneficiary.
Breaches of fiduciary duty can happen in many different situations. One of the most common is when an individual is appointed a guardian of another individual. Another instance where lawsuits that involve fiduciary duties are common are shareholder lawsuits where officers or directors of a corporation owe a fiduciary duty to the corporation. Anyone that is either a fiduciary or has someone that has a fiduciary duty to them should be aware of their rights and obligations in order to make sure that they are not cheated and do not get into trouble.