Is it a breach of fiduciary duty to open a competing business while having minority interest in another business?

Asked on January 24, 2013 under Business Law, Idaho


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Ordinarily it is a breach of a fiduciary duty for one who has a minority ownership interest in one business to open a competing business. The only exception is when the minority owner essentially is a silent partner and does not engage in the business on a day to day basis.

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