A Cleveland Business Lawyer Explains What May Constitute a Breach of Fiduciary Duty

Cleveland Business Lawyer

In a business context, directors and officers of a corporation have what's called a fiduciary duty to protect the interest of their investors or shareholders. A Cleveland business lawyer can explain what this duty requires, and how to prove a breach if you feel you've been harmed.

A Cleveland Business Attorney Explains the Fiduciary Relationship

A fiduciary relationship is based on basic agency law. When one person or entity, called the agent, holds a position of trust over another, the principal, the agent must, at all times, act for the benefit of the principal. This principal/agent relationship can arise in a variety of contexts, business and otherwise. For example, in a corporation, the directors and officers act as agents for the investors/shareholders. What this means is that the directors and officers must act to protect the interests of the shareholder. In general, the directors have the following duties:

  • Duty of care;
  • Duty of loyalty; and
  • Duty of accountability and disclosure.

Directors of a corporation must prudently invest shareholder's money. They are prohibited from commingling corporate funds with their personal funds. They must provide regular accountings to their shareholders, etc.

If you suspect directors or officers of a company in which you hold shares of having breached any of those duties, a business lawyer can review your case and discuss what you can do about it.

Other Situations Where a Fiduciary Duty May Arise

The corporate setting is one of the most common arenas where you'll find the existence of a fiduciary duty. There are others. For example, in estate matters, the executor or personal representative also has the same fiduciary duties to beneficiaries of the will. Lawyer/client relationships also give rise to fiduciary duties. Specific remedies may exist to protect you if you fall victim to mismanagement of your funds or assets in this context. Let a Cleveland business attorney counsel you.

To set up a consultation with an experienced Cleveland business lawyer, contact the Law Office of Shapero & Green. Call 216-831-5100.


Gain peace of mind. Know your options. Get answers. Reach resolution.

Since 1971, our zealous approach has spoken for itself from clients, colleagues and unsurpassed verdicts. Contact us today to initiate your relationship with our top attorneys.

“There’s no question that Shapero & Green provides the best representation you can get. They are more nimble than most firms and the experience they provide is at a level above the other firms can give us on complex matters.”
Bank Executive
“For years I used a major firm that had an M&A guy, a litigator and a specialist in my business industry. Too many people. I can talk to Brian about anything; He’s reliable, accessible and he tells me like it is.”
Well Respected Entrepreneur
“They are wonderful, lovable, very smart, good people. They get the job done.”
Vince D., Client
“The lawyers at Shapero & Green are tenatious and aggressive, but always appropriate to the situation. They have a good reputation for being fair and even-handed and they’re enjoyable to deal with. If they think they can win they’ll tell you. And if you have issues they’ll tell you — they never give false hope and they deliver what they promise. I like dealing with them.”
Long Time Bank Officer
“The lawyers at Shapero & Green are aggressively protective, always looking out for your best interest.”
Client and Highly Regarded Financial Advisor
“The lawyers at Shapero & Green are very knowledgeable and client-centric. Their focus is on getting the very best for the client, which sounds funny, but not every law firm is like that. These are lawyers that will get things done, efficiently and beneficially. They are just good people. We would never recommend anybody to someone without character and integrity, and they’re the highest.”
Managing Partner of Well Respected Law Firm
“The lawyers at Shapero & Green are outstanding. They’re smart, informative and success-oriented. They just seem to want to win and do the best job they can. We are never shorted on effort. They don’t cut corners at all, and my experience with Brian is that he’s smart, sharp, professional and his intuition on what should transpire has been dead-on for years.”
Executive Vice President of Large Closely Held Business