What is a fiduciary relationship?
A fiduciary relationship is a relationship of trust which may also be between a person and a juristic person such as Government, university or a bank. However, the most common example of such a relationship is the trustee of a trust, but fiduciaries can include business advisers, attorneys, guardians, administrators, directors of a company, public servants in relation to a Government and senior managers of a firm/company etc.
All relationships usually have an element of trust, but all of them cannot be classified as fiduciary. Information provided in discharge of a statutory requirement, or to obtain a job, or to get a license, cannot be considered to have been given in a fiduciary relationship.
The following kinds of relationships may broadly be categorized as “fiduciary”:
§ Legal guardians / wards
§ Executors and administrators / legatees and heirs
§ Board of directors / company
§ Receivers, trustees in bankruptcy and assignees in insolvency / creditors