What is a fiduciary duty?

A fiduciary duty refers to a legal obligation that requires one party to act in the best interest of another party. This relationship often exists in scenarios involving trust, such as the relationship between a lawyer and their client, a trustee and their beneficiary, or a corporate board member and the shareholders. The essence of fiduciary duty is centered on trust and loyalty, highlighting the responsibility of the fiduciary to prioritize the interests of the other party above their own.

In this context, the fiduciary must avoid conflicts of interest and act with care and in good faith, ensuring that they do not exploit their position for personal gain at the expense of the other party. This obligation is rooted in the principles of ethics and law, aiming to foster trust and cooperation in various professional and personal relationships.

The other options do not capture this essence of fiduciary duty. Acting in self-interest is contrary to the principles of fiduciary duty, which mandates prioritizing another's interests. A responsibility to inform the public does not specifically pertain to the private, trust-based relationship that defines fiduciary duty. A task assigned by a corporate board may involve duties within a corporate governance context, but it does not inherently imply the special trust and loyalty necessary for identifying a fiduciary relationship.