Fiduciary Obligation Law and Legal Definition

Fiduciary obligation is the obligation or trust imposed by law on officials of an organization making them liable for the proper use and disbursement of the organization's money, funds and property. It is employees' or directors' legal and moral duty to exercise the powers of their office for the benefit of the employer or the firm. Directors owe the duty of utmost good faith and must not put themselves in a position where their personal interests and their fiduciary duties may conflict.