Duties of Loyalty
/ˈduːtiz ʌv ˈlɔɪəlti/
Definitions
- (n.) Legal obligations requiring fiduciaries to act in the best interests of another party, avoiding self-dealing and conflicts of interest.
Directors must adhere to their duties of loyalty when making corporate decisions.
Forms
- duty of loyalty
Related terms
Commentary
The duties of loyalty are a core subset of fiduciary duties emphasizing the prohibition of personal gain at the expense of the principal.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.