# What Does “Fiduciary” Actually Mean? A fiduciary is someone who has been entrusted with the responsibility of making decisions on behalf of another person or organisation. Because of that position of trust, the law requires them to put the interests of those they represent ahead of their own.
In simple terms, a fiduciary must act honestly, loyally and in good faith, always making decisions for the benefit of others rather than for personal gain.
# What Does a Fiduciary Duty Require? Generally, a fiduciary must: - Act honestly and in good faith. - Put the interests of those they represent ahead of their own. - Avoid conflicts of interest. - Disclose personal interests that could influence decisions. - Exercise reasonable care, skill and diligence. - Never use their position for secret personal gain.
# Trustees of a Body Corporate A trustee owes fiduciary duties to the body corporate as a whole, not to the owners who elected them. Every decision should be made in the best interests of the scheme, even where that differs from the trustee's personal interests.
# Directors of a Company A company director owes fiduciary duties to the company itself. Directors must act for a proper purpose, in good faith and in the company's best interests rather than their own.
# Trustees of a Trust Trustees administer trust assets for the benefit of the beneficiaries. They may not treat trust property as their own and must always act in accordance with the trust deed and the law.
# Executors of Deceased Estates Executors occupy a fiduciary position when administering a deceased estate. They must collect assets, settle debts and distribute the estate fairly and lawfully while protecting the interests of all beneficiaries.
# Why It Matters The common thread across all fiduciary roles is trust. Accepting one of these positions means accepting a higher legal standard of conduct. Authority always comes with responsibility.