Many small to medium-sized businesses cannot handle all of their operational requirements in-house, so they work with outside professionals. If your company outsources work to professionals, you will grow to trust them and depend on them.
Some of those professionals will have a fiduciary duty to your business, which means that they should put what is best for your company ahead of profit or personal gain. Examples of professionals who may have a fiduciary duty to your business include accountants, professional trustees managing assets and lawyers.
What can you do when someone violates their fiduciary duty to your company?
You can remove them from their role
The first and most obvious step to take to protect yourself from a professional who doesn’t put your business first is to replace them. In some cases, you may need to go to court to terminate the contract with the professional who failed in their duty to your company.
You can also notify any relevant licensing authorities so that they can take disciplinary action against the professional. They could face censure or lose their professional license.
You can hold them accountable for losses suffered
Did someone improperly manage business assets or make decisions for personal profit that cost your company money? When you can show that their misconduct negatively affected your business’s finances, you may be able to bring a civil claim against them in court to recover some of those losses.
Pursuing business litigation in response to a professional breaching their fiduciary duty can compensate your business and hold someone accountable for their misconduct.