A fiduciary relationship exists when one party places power, and trust in another. As the Alberta Court of Appeal said in the case of Anderson, Smith & Kelly Customs Brokers v. World Wide Custom Brokers Ltd. at paragraph 13:
Certain relationships have long been recognized as giving rise to fiduciary obligations. For example, director-corporation, trustee-beneficiary and principal-agent. Kelly, as a director, senior officer and key employee of the Appellant, was a fiduciary of the Appellant. With respect to his status as a director and officer, s. 117(1)(a) of the Alberta Business Corporations Act, S.A. 1981, c. B-15, says:
Every director and officer of a corporation in exercising his powers and discharging his duties shall (a) act honestly and in good faith with a view to the best interests of the corporation .... (emphasis added)
Breach of fiduciary duties can carry with them liability.
If you believe you have suffered a breach of fiduciary duty, please feel free to contact us.
The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.