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Fairness doctrine

Fairness doctrine

Trust is, or at least should be, an organizing principle in business relationships.  Assuming that is true, does the “fairness doctrine,” which is part of the Fiduciary Duty of Loyalty, as applied in American courts, support the concept of trust as between a board of directors and a director who had an undisclosed conflict of interest?(answer)

 

 

 

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No it does not. Fiduciaries need to disclose to one another any conflicting interest that may raise concerns and affect the trust among them. It is true that trust is an organizing principle in business relationships. The fiduciary duty of loyalty requires fiduciaries to put the corporation’s interests ahead of their own. No single fiduciary should hold a conflicting interest. This clause exists to prevent the fiduciaries from using the organizational assets or items for their own benefit. Take for instance a company that deals…

APA

216 words