Fiduciary Obligations in Business

The scholarship on fiduciary duties in business organizations is often pulled in two directions, with corporate law theorists expressing disdain for the role of fiduciary duties. This volume aims to rectify this situation by bringing together scholars to analyze fiduciary relationships and the fiduciary obligation in the business context, demonstrating that fiduciary law can inform pressing corporate governance debates.

Format: Paperback / softback
Length: 373 pages
Publication date: 22 June 2023
Publisher: Cambridge University Press

The study of fiduciary responsibilities in business organizations is a complex and multifaceted field that draws attention from a wide range of perspectives. While most scholars and observers would agree that business organizations are crucial contexts for the application of fiduciary obligations, corporate law theorists have often expressed a dismissive attitude towards these duties, leading to a disconnect between fiduciary law and theory and the realities of the business world. This volume seeks to address this gap by bringing together a diverse group of scholars who examine fiduciary relationships and the fiduciary obligation within the business context. Contributing authors explore fiduciary responsibilities across various domains, including entity structure, bankruptcy, and investment regulation. Through their insights, the volume demonstrates that fiduciary law possesses the potential to inform and shape important corporate governance debates, particularly those centered around stakeholder models of the corporation that extend beyond the interests of shareholders.

Introduction:
The study of fiduciary responsibilities in business organizations is a critical area of research that has gained increasing importance in recent years. As businesses become increasingly complex and interconnected, the need for clear and enforceable fiduciary standards has become more apparent. Fiduciary duties are legal obligations that require individuals or entities to act in the best interests of others, often in the context of a business relationship.

Fiduciary Duties in Business Organizations:
Fiduciary duties in business organizations can take many forms, including duties of care, loyalty, and good faith. These duties are imposed on individuals or entities who hold positions of trust, such as directors, officers, and shareholders. The primary goal of fiduciary duties is to protect the interests of stakeholders, including shareholders, customers, and employees.

Corporate Law Theorists' Perspective:
While most scholars and observers would agree that business organizations are crucial contexts for the application of fiduciary obligations, corporate law theorists have often expressed a dismissive attitude towards these duties. Some theorists argue that fiduciary duties are unnecessary or overly burdensome and that they can impede the efficiency and profitability of businesses. This perspective has led to a lack of attention to fiduciary responsibilities in corporate law and theory.

Disconnect between Fiduciary Law and Theory:
The disconnect between fiduciary law and theory has significant implications for the business world. Without clear and enforceable fiduciary standards, businesses may be exposed to legal risks and ethical challenges. For example, directors and officers may make decisions that prioritize their own interests over the interests of shareholders, leading to financial scandals and shareholder losses.

The Need for Rectification:
To address this situation, this volume aims to bring together a range of scholars to analyze fiduciary relationships and the fiduciary obligation in the business context. The contributing authors examine fiduciary responsibilities across various fields, including entity structure, bankruptcy, and investment regulation. By examining these issues from different perspectives, the volume seeks to provide a comprehensive understanding of fiduciary law and its implications for business organizations.

Contributing Authors:
The volume features contributions from a diverse group of scholars, including legal experts, business professionals, and academic researchers. The authors offer a range of insights and perspectives on fiduciary responsibilities, drawing on their expertise and research in the field.

Conclusion:
The study of fiduciary responsibilities in business organizations is a complex and multifaceted field that requires a comprehensive understanding of legal, ethical, and economic factors. This volume aims to contribute to the ongoing dialogue on fiduciary law and its implications for business organizations. By bringing together a diverse group of scholars, the volume provides valuable insights and perspectives that can help shape the future of corporate governance and fiduciary responsibilities.

ISBN-13: 9781009387095