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fiduciary duties

fiduciary duties

Postby jantra » Sat Nov 26, 2016 11:35 am

let's say payment terms between two companies are 14 days and a payment was made on 12 days instead of 14, if Mr A is on the board of both companies, does this early payment by 2 days create a breach of fiduciary duties to the company that settled early?

I would say not since the creditor needed to be paid anyway. no other creditors have been affected by this devision.
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Re: fiduciary duties

Postby atticus » Sat Nov 26, 2016 11:45 am

No.

What loss does anyone think may have been caused to the company?
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Re: fiduciary duties

Postby dls » Sat Nov 26, 2016 12:08 pm

Sorry J, but you are a long way off the mark.

An invoice is payable on receipt. 'Terms 14 days' suggests only that a breach will not be actioned if remedied within 14 days.

There can be no general duty delay payment of a bill, and certainly nothing approaching a trust.
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Re: fiduciary duties

Postby jantra » Sat Nov 26, 2016 12:39 pm

thanks both

happy to be wide of the mark here. the remark was made against me as a result the payment was made 2 days before the due date.

I never thought about payment being due on receipt like you've explained it. that's valuable.
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