Fiduciary duty – n : legal term; assigned responsibility to act on behalf of an owner or owners in their best financial interest. When an individual represents a party or a group in a position of trust or confidence, it is that person’s duty to act primarily for the benefit of the party or group he/she represents. A fiduciary duty compels one to make decisions that are in the best financial interest of to the party represented. In entrepreneurship and venture finance, directors sitting on a company’s board of directors legally carry a fiduciary duty or fiduciary responsibility to always act in the best financial interests of the company and its shareholders.

------------------------------------------------------------
Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
Copyright © 2004-2006 CompanyCrafters LLC