Is it a breach of fiduciary duty to open a competing business while having minority interest in another business?
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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
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 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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