Is there a fiduciary relationship between a director of a private equity company and the director of the company?
British Columbia, Canada
The following excerpt is from Pan Pacific Recycling Inc. v. So, 2006 BCSC 1337 (CanLII):
Moreover, looking at the “rough and ready” guide in Frame v. Smith, as it has been referred to, the elements that would make him a fiduciary are absent. Mr. So did not have the power or discretion to affect the companies’ legal or practical interests, nor was it demonstrated that the company was particularly vulnerable or at the mercy of Mr. So.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
When a managing director of a company acts in breach of his fiduciary duties to the company, does he have to disclose to the purchaser of a part of the company’s business? (British Columbia, Canada)
Does a dispute between shareholders between directors of a private equity company constitute bad faith? (British Columbia, Canada)
What is the reasonable expectation of a shareholder in a private equity company? (British Columbia, Canada)
What is the fiduciary relationship between a director and a shareholder? (British Columbia, Canada)
Is a fiduciary relationship between parties determined by relationship rather than status or occupation? (British Columbia, Canada)
What is the fiduciary duty of a director to exercise care and diligence and skill when making decisions about management of a company? (British Columbia, Canada)
In what circumstances will the Director of Directors of a Corporation be able to claim that a claim against the Corporation is based on an allegation that the Corporation has not paid the Director a fair share of the proceeds of litigation? (British Columbia, Canada)
Can a shareholder of a company who is not a director of the company make an application for an oppressive manner? (British Columbia, Canada)
Can a shareholder of a company sue the company for damages arising from a breach of fiduciary trust? (British Columbia, Canada)
Is a director of a publicly listed company liable for a serious breach of fiduciary duties? (British Columbia, Canada)
