Austin Texas Business Breakup Attorneys
Officers, directors, partners and members of various business entities often have a fiduciary duty under the law not only to act in the best interest of the company, but also to act in the best interest of the owners of the company and, in some cases, employees of the company. A fiduciary relationship is both a legal and ethical relationship of confidence and trust and must always be taken seriously.
Austin Texas Breach of Fiduciary Duty Attorneys
The duty of a fiduciary is the highest standard of care recognized in the law. The fiduciary owes duties of loyalty and care and those duties must always be honored. Under Texas law, when one is a fiduciary and is accused of breaching his or her duties, the burden is upon the fiduciary to show that his or her actions were proper.
Corporate fiduciary litigation often arises when there is an allegation that the fiduciary duty has been violated by a corporate officer or director. Such a breach of fiduciary duty may be the result of simple negligence or it may involve intentional actions, such as a misappropriation of funds or other assets of the business.
Shareholders of an incorporated business are usually owed a fiduciary duty. Officers and directors of the corporation must use reasonable care in the management of company assets, and they must disclose honestly the transactions, assets, debts and other liabilities of the company. Corporate fiduciary litigation arising from a breach of that duty can result in liability of both the officers and directors. It occurs frequently enough that many companies obtain Directors and Officers Insurance Policies to protect themselves from that liability.
Fiduciary Duties Over Retirement Funds and Retirement Assets
Fiduciary disputes also frequently arise from the management of 401k plans and pension plans as set forth in the Employee Retirement Income Security Act of 1974. Officers and directors may face personal liability concerning retirement and pension plans for misrepresentation, failing to disclose information, failure to properly monitor investment managers or investments, choosing unsuitable investments and failing to take reasonable steps to avoid losses by the plan.
Our clients benefit from our experience in these areas:
- Shareholder Disputes
- Director and Officer Liability
- Misappropriation of assets and/or Embezzlement
- Usurpation of company opportunities
- Misrepresentation, whether intentional or negligent
- Partnership disputes
- Closely Held Corporation Disputes
Let Us Help You
If you involved in a corporate fiduciary dispute or need to be defended from such allegations, let us put our experienced corporate fiduciary litigation attorneys to work for you. Contact us via this website or call us at 512-761-8529 for a free consultation.