Speak to a Breach of Fiduciary Duty Lawyer Before the Damage Gets Worse

When a director acts in their own interests rather than the company’s, the damage can be significant and swift. Our breach of fiduciary duty lawyers advise shareholders, companies and boards on identifying what has happened, recovering losses and holding the director accountable through the right legal route.

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Fiduciary Breaches Rarely Come to Light Immediately

By the time a breach of fiduciary duty is discovered, the harm is usually already done. A director has diverted a contract. Funds have been moved. A competing business has been set up using company resources. Our breach of fiduciary duty lawyers work with companies and shareholders across Manchester and throughout the UK, advising on how to establish what has happened, what can be recovered, and whether director misconduct gives rise to a claim worth pursuing. The earlier advice is taken after a suspected breach, the better the prospects of recovery.

How Our Breach of Fiduciary Duty Lawyers Help

From identifying the breach to advising on remedies and recovery, we support companies and shareholders at every stage of a fiduciary duty claim.

Identifying the Breach

Not every poor business decision by a director amounts to a breach of fiduciary duty. Our lawyers review the facts, the company documents and the director’s conduct to establish whether a breach has occurred, which duty has been breached, and whether the breach caused the loss you have suffered.

Diversion of Business Opportunities

A director who takes a business opportunity for themselves that should have been offered to the company is in breach of their duty to avoid conflicts of interest. Our lawyers advise on establishing the diverted opportunity, quantifying the loss to the company and the routes available to recover it.

Self-Dealing and Undisclosed Conflicts

Directors must declare any interest in a transaction or arrangement with the company. Where a director has entered into contracts, made payments or approved transactions that benefit themselves without proper disclosure, this is a breach of fiduciary duty. Our lawyers advise on the available remedies, including rescission of the transaction and recovery of any profit made.

Setting Up a Competing Business

A director who uses company resources, confidential information or client relationships to set up or assist a competing business while still a director is in serious breach of their duties. Our lawyers advise on the options available to the company, including injunctive relief through regulated professionals and claims for the profits generated by the competing business.

Recovery and Remedies

Where a breach of fiduciary duty has caused loss, the company may be entitled to compensation, an account of the profits made by the director, or rescission of any transactions tainted by the breach. Our lawyers advise on the most appropriate remedy for the specific circumstances and the realistic prospects of recovery.

What This Means for You

  • A clear view of whether a breach of fiduciary duty has occurred
  • Evidence of the breach identified and documented from the outset
  • The most appropriate remedy pursued for your specific circumstances
  • Realistic advice on the prospects and cost of recovery
  • The director held accountable through the right legal route

When To Seek Advice

  • You suspect a director has been diverting company contracts or opportunities
  • A director has set up or is involved in a business that competes with the company
  • Company funds have been moved or paid to a director or connected party without proper authority
  • A director approved a transaction that benefited themselves without disclosing the conflict
  • A director has shared confidential company information with a third party
  • You want to understand whether what has happened amounts to a breach of fiduciary duty before taking any action

Meet the Founder

Marium brings 22 years of experience advising businesses and shareholders on director obligations, fiduciary duties and commercial disputes across the UK and internationally. A Solicitor regulated by the SRA (ID: 277854), MCIArb, and registered mediator in the DIFC Courts, she has advised on complex breach of fiduciary duty claims, director misconduct and shareholder disputes for clients ranging from owner-managed businesses to established companies.

Marium Razzaq - Solicitors in Manchester
Marium Razzaq
Solicitor & Director Mar Legal

MCIArb

Why Companies Choose MAR Legal for Fiduciary Duty Claims

Solicitor Led Advice

Every fiduciary duty matter is handled directly by our solicitors.

Fast Response

Claims move quickly. We respond without delay and prepare your position at pace.

Fixed Fee Pricing

Clear fee structures agreed at the outset, so you understand the cost of advice before committing.

Commercial Focus

Our lawyers focus on recovery and outcome, not just establishing that a breach occurred.

Trusted by companies, shareholders and boards across the UK for clear, commercial advice on breach of fiduciary duty and director misconduct.

How Our Breach of Fiduciary Duty Process Works

01

Breach Assessment

We review the facts, the company documents and the director’s conduct to establish whether a breach of fiduciary duty has occurred, and which duty has been breached.


02

Loss and Recovery Analysis

We advise on the losses caused by the breach, the remedies available and the realistic prospects of recovery, including whether the director has assets worth pursuing.


03

Action and Resolution

We advise on the most appropriate route, from without prejudice negotiations and settlement through to formal proceedings where litigation is justified. Where court representation is required, we work alongside appropriately regulated professionals.
 


04

Documentation and Completion

Once the matter is resolved, we handle the settlement agreement, any share transfer documentation and any board resolutions required to formally conclude the position.

What Our Clients Say

Breach of Fiduciary Duty FAQs

A breach of fiduciary duty lawyer advises companies and shareholders on whether a director has breached their legal duties to the company, what remedies are available and how to pursue recovery. This includes reviewing the factual and legal position, advising on the strength of a claim, conducting without prejudice negotiations with the director and their advisers, preparing any documentation required for a settlement, and where formal proceedings are necessary, working alongside regulated litigation professionals to support the claim.

A breach of fiduciary duty occurs when a director fails to meet the legal obligations, they owe to the company under the Companies Act 2006. Directors owe seven statutory duties, including the duty to act in the way they consider in good faith would be most likely to promote the success of the company, the duty to avoid conflicts of interest, the duty not to accept benefits from third parties, and the duty to declare any interest in a proposed transaction or arrangement. A breach occurs when a director acts in a way that is inconsistent with these duties, particularly where they prioritise their own interests over those of the company.

The cost depends on the complexity of the matter and the route taken to resolve it. Where the position can be resolved through without prejudice negotiations, costs are significantly lower than where formal proceedings are required. Our solicitors offer fixed fee options for initial assessments and advisory work, so you have a clear picture of the cost before committing to any process. We are happy to discuss fee arrangements at the outset and to give a realistic estimate of the overall cost once the nature and complexity of the matter is understood.

Taking legal advice early significantly improves the prospects of a successful outcome. Breach of fiduciary duty claims require detailed analysis of the director’s conduct against their specific legal obligations, and the evidence needed to support a claim must be identified and preserved correctly from the outset. Acting without advice or taking steps that inadvertently alert the director before you are ready, can compromise the claim before it has properly started. Our breach of fiduciary duty lawyers provide an initial assessment so you can understand your position before deciding how to proceed.

In UK company law, a breach of fiduciary duty means a director has failed to act in accordance with the duties they owe to the company under sections 171 to 177 of the Companies Act 2006. The most commonly litigated breaches involve directors placing themselves in a position of conflict without proper disclosure, taking corporate opportunities for personal benefit, and acting in the interests of a third party rather than the company. The concept is rooted in equity and the courts take a strict approach to self-dealing by directors, particularly in closely held companies where the director has significant influence.

The remedies depend on the nature of the breach and the loss caused. Where a director has profited from a breach, the company can seek an account of profits, requiring the director to pay over the gains made. Where the company has suffered a loss, it may be entitled to equitable compensation equivalent to the loss caused by the breach. Where the director entered into a transaction in breach of their duties, the company may be able to have the transaction set aside. In serious cases, the director may also be subject to disqualification proceedings brought by the Insolvency Service, though this is a separate process handled by regulated professionals.

Yes, and they frequently are. Many director disputes involve allegations of fiduciary duty breach alongside the primary conflict, particularly where a director is being removed, and allegations of misconduct are part of the reason. Our lawyers advise on both the director dispute and the fiduciary duty position in the same matter, which avoids duplication and gives a more coherent picture of the overall legal position. Where the fiduciary duty claim is likely to result in court proceedings, we bring in appropriately regulated professionals to handle the litigation alongside our advisory work.