fiduciary relationship

A **fiduciary relationship** is a legal or ethical bond of trust between two parties, where one party (the fiduciary) is obligated to act in the best interests of the other (the beneficiary). This relationship typically involves a higher standard of care and loyalty, requiring the fiduciary to prioritize the beneficiary’s needs above their own. Common examples include relationships between trustees and beneficiaries, attorneys and clients, or directors and shareholders. Understanding fiduciary relationships is essential in areas such as law, finance, and corporate governance.