‘Lord Eldon Redux: Information Asymmetry, Accountability and Fiduciary Loyalty’

“Judicial and scholarly discourse about fiduciaries’ duty of loyalty has emphasized the ‘no conflict’ and ‘no profit’ rules as a vehicle for coping with opportunistic behaviour much more than disclosure duties. In a new article published in the Oxford Journal of Legal Studies, I seek to rebalance this image of the structure of fiduciary loyalty by considering the roots of the fiduciary duty as an institutional response to acute information asymmetries. In this view, a duty of self-abnegation (‘no conflict’) and a duty of full disclosure stand on equal footing. Only together can they constitute the fiduciary’s duty of loyalty to fulfil her mission of promoting the beneficiary’s interest …” (more)

[Amir Licht, Oxford Business Law Blog, 20 June]

First posted 2017-06-20 05:52:19

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