When someone is put into a position of managing money or property for another's benefit, that person is known as a trustee or fiduciary. Partners, officers and directors all have a fiduciary duty to each other, the company and the shareholders or members (beneficiaries).

This duty requires the fiduciary to act in good faith and not favor himself or herself at the expense of the others. When the fiduciary breaches that duty, he or she may be liable to the others for any damage caused by the breach.