Legal Aspects of Fiduciary Duties in Malaysia

This work seeks to examine the principles of law in relation to the legal duties of fiduciaries. These duties are not only those that originate from the equitable jurisdiction of the court, but also involve some other duties imposed under written law as well as those developed at common law. The scope of fiduciary duties in private law is extensive – regulating the conduct of professions such as trustees, lawyers, company directors, company promoters, partners, and agents; and in some other relationships, the facts of the case may be such as justify the imposition of fiduciary duties on employees, financial advisors, bankers, and parties to joint venture, to quote a few examples. In instances not covered by precedent, fiduciary duties may be imposed where the hallmarks of trust and confidence are found.

The creation of the office of trustees under the companies as well as the capital markets and services statutes indicates the importance of the office of trustees, and the attendant fiduciary duties attached to trustees, in the corporate and financial sectors; and this is in addition to the existing principles of law, including those developed by equity, governing the exercise of directorial powers by company directors.