Fiduciary Duty under Texas Law
Texas law places very strict obligations for those with a fiduciary duty. Any individual who has either voluntarily taken on, or has been given this responsibility of a fiduciary duty, owes the highest degree of honesty and loyalty. A fiduciary is required to put the wellbeing and interest of the person for whom they are responsible above their individual interests.
Texas law, above all, requires exceptional loyalty from a fiduciary and it also inflicts harsh punishments against those that breach their fiduciary roles. Fiduciary duties not only attract severe penalties, but they are easy to violate too. Even if the violation is not deliberate, the violator has to account for his or her actions.What is a fiduciary's role?
- A fiduciary must undertake the assigned role with great integrity.
- The standards required by a fiduciary in his or her profession must be adhered to carefully, to meet any required professional standards to ensure that any beneficiary is given the as much protection as possible.
- A fiduciary has to be completely honest when handling finances so that there is no chance of any possible fraud or misrepresentation taking place.
- A fiduciary must place the welfare of their beneficiary before their own interests.
- A fiduciary is not allowed to take any action that could be seen to be contrary to their beneficiary's interest without getting permission from that person.
There are no fixed situations when violations occur. Common violations include when a person becomes the guardian of somebody else and fails to meet obligations. Another situation is when directors of a company breach their fiduciary role towards their shareholders. If you are a shareholder and feel that the fiduciary duty of your company director has been violated, then you as the plaintiff will need an experienced Texas business lawyer to represent you. Alternatively, if you owe a fiduciary duty to another individual or individuals and you have been accused by them of breaching your obligations, then you will need to speak with our legal team today.