Important Legal Definitions
Explore legal terms, clear definitions and practical examples.
Fiduciary Relationship
Principles of Natural Justice & Equity
Definition
A relationship of trust, reliance, and confidence recognized in equity (such as trustee-beneficiary, lawyer-client, doctor-patient, or director-company), where the fiduciary is bound to act with utmost fairness and cannot make an unauthorized secret profit.
Example
A corporate director learns of a lucrative mining lease through board discussions, secretly incorporates an independent firm, and secures the lease for himself; the civil court holds the director liable as a fiduciary to account for all secret profits to the parent company.