Tan Kin Lian's Blog: Fiduciary duty

Wednesday, June 16, 2010

Fiduciary duty

The director of a company has a fiduciary duty (i.e. a duty of trust) to act in the interest of all shareholders. In the past, many people hold positions of trust and act with integrity. This position of trust also extend to profesionals, such as doctors and lawyers.

In recent years, due to greed and the wish to be super rich, some people (maybe many people) are behaving less honorably. They have less compunction about over-charging on their fees or take take advantage of other people's ignorance to make profit at their expense. In the past, these people would be considered as crooks. Today, these behaviors are considered as acceptable in the free market.

Tan Kin Lian

7 comments:

Anonymous said...: Mr. Tan Kin Lian,
You are the true son of Singapore. Who would offend the rich by speaking honestly? Meritocracy and pragmatism are hollow, if it is not grounded by pillars of values such as the spirit of service and sacrifice.

From Cashew Nut; June 16, 2010 8:50 AM
Anonymous said...: I still teach my kids the good values of a good man. My son confess to me none of his friends give a damn on those values. Sometimes I wonder I might be hampering them to become rich.; June 16, 2010 10:06 AM
Anonymous said...: 10.06am, I agreed and did the same and get the same feedback from my kids. At the end, I concluded that we live in the eyes open big big environment so if you cant really survive on those good values, at least you do not do things that you cant live with them.; June 16, 2010 10:55 AM
Anonymous said...: Insurance agents lack fiduciary duty.They think of commission. They wack consumers for commission.There will be retribution for them.They have not values, no conscience and unscrupulous even old folks they wack.; June 16, 2010 1:42 PM
Anonymous said...: Most Singaporeans are just following the Wise Leadership to enhance their worths by enriching themselves with $$$$$$s.

What's wrong with our leaders enhancing their worth with $$$$$s? How else do Singaporeans expect their leaders to prove their worthiness? Even the Best in this land has yet to receive an international accolade for any virtuous act.; June 16, 2010 3:03 PM
Anonymous said...: Nowadays one cannot trust people of high authority anymore, everyone is money face.

Obviously politicians and govt cannot be trusted, they always have their own objectives, we now hear of new world order.

Lawyers only want to earn hugh fees, who cares about justice.

Doctors are basically legalised drug pushers, sell more expensive drugs and do more tests and treatments to earn big bucks.; June 16, 2010 11:37 PM
Anonymous said...: I think I'll like to differentiate between the government and businessmen. The businessman's goal is to make money, as long as he doesn't break the law, or cheat people, he is free to use all methods, honorable or not.

On the other hand, it is the government's responsibility to regulate, not the businessman.

Of course, there will be a conflict of interest in the regulator role once the government itself gets involved in business as is the case of Singapore.

For example, how does SGX regulate when it makes money from the people and company it regulates?; June 17, 2010 12:48 AM