| Abstract [eng] |
This masters’ thesis analyses the concept of fiduciary relationships and focuses on revealing legal instruments used in the management of conflict of interests in such relationships. Analysis of this thesis is based on the legal doctrine and case law of United States of America, United Kingdom and Canada. Such focus influenced by two factors. First being that the notion of fiduciary relationships and conflicts of interest first formed in the countries of common law tradition. And second, that the reception of fiduciary relationships in Lithuania was heavily influenced by the Civil Code of Quebec, which had previously adopted the understanding of fiduciary relationships through the English speaking part of Canada. This work reveals main elements of fiduciary relationships which are determined through four differences separating such relationships from representation relationships, i. e., expertise of the fiduciary, purpose and freedom of fiduciary actions, and basis of occurrence of fiduciary relationships. With the help of these elements an original definition of fiduciary relations is provided which defines these relationships as arising on the basis of an agreement formed by the free will of the parties, where an entrustor entrusts a fiduciary with a certain freedom of his together with the rights to influence his legal and (or) financial position, and the fiduciary in turn accepts such rights and assumes fiduciary obligations to act on their own discretion in the best interests of the entrustor. This work also determines the types of conflicts of interests which are potential and actual conflicts of interest. These types are further divided into conflicts arising according to subjects (vertical and horizontal (monetary and divided loyalty conflicts) and conflicts according to the groups of interests (internal and external). Altogether, this masters’ work puts emphasis on management of potential horizontal and vertical conflicts of interest, i. e., just managerial compensation policy, quantitative representation, outside director, restriction of information and waiver of personal interests. |
