Fiduciary Duties in Corporations and LLCs

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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.

Chapter 93A Demand Letters: Flammable Materials for Any Business →

/ Law Office of Stefan Cencarik, PLLC /
Chapter 93A Demand Letters: Flammable Materials for Any Business

Receipt of a G.L. ch. 93A demand letter by any business is a serious legal issue. It is a pre-text for costly State Court litigation and sets a path for litigants to use the law to impose severe financial penalties on businesses that have violated the statute. This Article will examine the severity of the statute and why it is a good idea to take these letters very seriously. These demand letters should be treated as flammable.  With due care, expeditiously and from a distance.  

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