# Duty of Loyalty

**IRI:** https://folio.openlegalstandard.org/R8M4n8ddbGziiJynG5reolX

## Labels

**Preferred Label:** Fiduciary Loyalty

**Alternative Labels:**

- Loyalty Obligation

## Definition

Duty of loyalty is a legal obligation that requires fiduciaries to act in the best interests of their beneficiaries or principals, avoiding conflicts of interest and self-dealing. This duty ensures that fiduciaries prioritize the interests of those they serve above their own personal gain.

## Examples

- Corporate Director’s Decisions: A corporate director must make decisions that prioritize the best interests of the company and its shareholders, avoiding personal gains at their expense.
- Employee Protecting Employer’s Interests: An employee must act in the best interests of their employer, avoiding activities that would harm the employer or benefit a competitor.
- Executor Administering Estate: An executor must act in the best interests of the beneficiaries when managing the deceased’s estate, avoiding any self-dealing or conflicts of interest.
- Financial Advisor Providing Unbiased Advice: A financial advisor must offer investment advice that is solely in the client’s best interest, without being influenced by personal gain or third-party incentives.
- Trustee Managing Trust Assets: A trustee must manage trust assets exclusively for the benefit of the beneficiaries, avoiding any conflicts of interest.

## Sub Class Of

- https://folio.openlegalstandard.org/RDYMSvTzMQvR5oJWYzguyJW

**Deprecated:** False