Vol. 14 No. 86 (2025): Continuous Edition (February – December 2025)
Articles

Decoding the fiduciary duty of loyalty

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  • Yevhen Trubakov
Yevhen Trubakov
National Academy of Sciences of Ukraine (Kyiv, Ukraine).
Author Biography

Candidate of Legal Sciences, Senior Research Associate at the Department of Private Law Researches of the Institute of Lawmaking and Scientific-Legal Expertises of the National Academy of Sciences of Ukraine (Kyiv, Ukraine).

DOI: https://doi.org/10.34069/AI/2025.86.02.1

Published 2025-02-28

Keywords

  • fiduciary duties, recodification of civil law, duty of loyalty, rule of prohibition of conflict of interests, rule of prohibition of unauthorised profits, fiduciary duty of good faith.

How to Cite

Trubakov, Y. (2025). Decoding the fiduciary duty of loyalty. Amazonia Investiga, 14(86), 9–17. https://doi.org/10.34069/AI/2025.86.02.1

Copyright (c) 2025 Yevhen Trubakov

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The article focuses on the duty of loyalty, which is fundamental to the fiduciary relationship as a legal concept. The inseparability of fiduciary relationship and the duty of loyalty is revealed through its attributive legal nature, which is related with the exercise of derivative powers delegated to the fiduciaries and appropriation of thereof results by the beneficiaries. The study identifies loyalty as a legal standard rather than a specific duty, emphasizing the need for clarity on what constitutes "acting in the best interests" of the company. It concludes that while fiduciary loyalty involves a framework of prohibitions to safeguard beneficiary interests, the intertwining of fiduciary duties of care and loyalty, by way of introduction the good faith duty in the corporate law, complicates the doctrinal consistency of the context of this term. Ultimately, the conclusions suggest a clearer definition of fiduciary loyalty in general terms and with the incorporation of the duty of good faith in the corporate law in particular.

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