Fusion Brands of America Ceo Breaches Fiduciary Duty

Case Study on Breach of CEO’s Duty at Fusion Brands of America

November 21, 2014

Myers Nii-Ansah

Business Law

Fiduciary Duty:

The legal duty in a business relationship to act solely in the best interests of the business/party.

Duties:

* Duty to act honestly and in good faith with the party

* Must disclose all relevant business opportunities

* Avoid making secret profits

* Avoid conflicts of interest

* Disclosing conflicts of interest

Fiduciary duties are important to a company because it keeps partners from acting dishonestly to the detriment of the company. They are important because they keep the business running in good order, and keeps business partners from taking advantage of each other.

The CEO is the chief executive and main representative of a company. It is their job to make sure the company is conducted within the law, and ethically. It is the responsibility of a CEO to control operations, marketing, financing and many other jobs. The CEO conducts business operations and manages a wide range of employees. A CEO is a person of high strategical, financial and political intelligence, and must make critical decisions regarding the future of their business. The CEO reports to the board of directors to approve management decisions and to receive instruction. It is important for a CEO to act within their fiduciary duty because they are responsible for the most important decisions within the business. If a CEO cannot be trusted to act honestly and in good faith the business will not be able to run smoothly. A CEO that acts dishonestly will have negative effects on capital as well as the company’s image.They are a main representative of a company. If it is found out that a CEO has done something illegal, or has acted outside his or her fiduciary duty, it will have a negative impact on the way outsiders will look at the company.

My case is about Caroline Peiper-Vogt, a CEO of Fusion Brands America. Caroline is facing a 10...