Corporate officers (such as the President, Treasurer and Secretary), partners in a partnership, and Managers and Members of a Massachusetts Limited Liability Company (LLC) owe a fiduciary duty to the business entity. A fiduciary duty means that the individual owes a duty of honesty and loyalty, and must act in the best interest of the business entity. When Boston area corporate officers and LLC participants divert business opportunities or assets to themselves for personal gain, or engage in competing enterprises, that individual has potentially committed a breach of fiduciary duty.
For example, a corporate officer may not use the property of a corporation to benefit another entity or herself/himself. Corporate operating funds, client lists, and other confidential, proprietary information cannot be used for personal gain and to the detriment of the entity. Additionally, a corporate officer must keep and not disclose company confidential information to parties outside of the entity and to its detriment, such as trade secrets or other business processes.
If you have questions about a potential breach of fiduciary duty committed at a business entity in the Boston area of Massachusetts, please contact one of our business litigation attorneys at 781-463-6063.