Duty of Loyalty

Definition - What does Duty of Loyalty mean?

Duty of loyalty is a term specifically used in corporate law which describes conflict of interest between fiduciaries. It is also required by the fiduciaries to put their personal interest behind the corporate interest.

Justipedia explains Duty of Loyalty

For a director of a corporation to take a decision that mutually benefits both himself and the company is acceptable but if he puts his interest ahead of the company's then the duty of loyalty is breached.

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