Account
Get our app
Account Start free trial Log in

Start Your Board Resolution

Make document

A breach of fiduciary duty complaint is much easier to prove than fraud as there's no need to prove fraudulent or criminal intent. To win a breach of fiduciary duty complaint, the claimant only has to prove that you were in a fiduciary position and you breached that duty for your own personal gain.

How to Avoid a Breach of Fiduciary Duty

One way to avoid breaching your fiduciary duties is to ensure that Board Resolutions are created each and every time a major decision is made by the board of directors or shareholders on the company's behalf. Resolutions can serve as a record of the choices the directors and shareholders have made.

It's also important to understand the basics of fiduciary duty so that you know what's to be expected of you, and what actions might be in breach of your duty. Understanding and avoiding prohibited transactions (e.g. those that would benefit you personally or adversely affect the company) will also help you avoid breaching your duties.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.


Ask a Legal Pro

Our Legal Pros are here for you.
Characters remaining: 600
Meet our featured Legal Pros

Try Rocket Lawyer FREE for 7 days

Get trusted legal help at a price that works for you. Your free 7-day trial includes:

Unlimited documents & signatures
Personalize, RocketSign®, and share any legal document you need

Business filings made simple
Start your business, stay compliant, and protect your ideas — all in one place

Ask a Legal Pro
Get answers to your legal questions or have your documents reviewed by a Legal Pro

Retain a Legal Pro
Get personalized help for more complex legal matters

Member-only savings
Enjoy exclusive discounts for Legal Pro services and partner offers

Legal help, anywhere
Use our free app to get legal support whenever and wherever you need it