Steps to Take When Your Business faces a breach of fiduciary duty can determine whether your company suffers long-term harm or recovers with minimal disruption. Fiduciary duty refers to the legal obligation that directors, officers, partners, or employees owe to act in the best interest of the business. When that duty is violated—through self-dealing, misappropriation of assets, or dishonest conduct—the damage can be severe, both financially and reputationally.

Steps to Take When Your Business suspects a breach should start with gathering evidence. Documentation is critical. Identify any emails, contracts, financial records, or communications that suggest misconduct. A clear timeline of events will help your legal team assess the situation and determine if a breach has occurred.

Steps to Take When Your Business encounters this issue should include an immediate internal investigation. Depending on the severity, this might involve engaging outside counsel or forensic accountants to evaluate potential damages and conflicts of interest. A 2023 Business Ethics Alliance report found that over 40% of small to mid-sized companies fail to pursue early legal evaluation, resulting in avoidable losses.

Steps to Take When Your Business confirms a fiduciary breach often involve swift legal action. This may include removing the offending party from their role, filing a civil lawsuit for damages, or seeking an injunction to prevent further harm. In serious cases, criminal charges may also be pursued, especially if fraud or embezzlement is involved.

Steps to Take When Your Business is at risk must be proactive and strategic. At Legal Cali, we guide clients through every phase—from investigation and litigation to recovery—while minimizing operational disruption. Whether you’re dealing with a rogue partner, a dishonest executive, or a compromised board member, taking prompt, informed action is the key to protecting your company’s future. Let us help you safeguard what you’ve built.