Individuals who hold positions of power in Nevada-based companies may have fiduciary duties to uphold. A fiduciary duty exists when a party is obliged to perform their tasks with the best interests of others in mind. For example a member of a business’s executive board may have a fiduciary duty to act in the best interests of its shareholders to ensure that the business is being run in a profitable manner.
As one may expect in the realm of business litigation, allegations of breached fiduciary duties do come up and business entities may find themselves embroiled in legal disputes concerning the actions of their directors, boards or others. There are several elements that must be proven for an alleged victim to prevail on a claim of a breached fiduciary duty, and those elements include the existence of a fiduciary duty, a breach of that duty and damages suffered by the victim.
Alleged victims who claim that they have suffered losses due to breached fiduciary duties may have a range of possible damages that they can claim in their pleadings. Those damages may include, but are not limited to, their actual losses as well as punitive damages, if such damages are warranted in their cases. Readers should talk to business attorneys about breached fiduciary duty claims regardless of which side of the case they are on.
Holding a fiduciary role in a corporate entity places a great amount of responsibility on a party. While not every bad decision made by a party of power will necessarily give rise to a breached fiduciary duty claim, individuals should be aware that there are options for misconduct.