A breach of the fiduciary conflict rule requires the fiduciary actually to act in a position of conflict and pursue or prefer a personal interest; the mere existence of a potential conflict is not actionable. The distinction between 'substitutive' and 'reparative' equitable compensation is critical in determining the appropriate measure of loss for breach of fiduciary duty by company directors. Where a corporate trustee sues its directors for breach of fiduciary duty, it is misleading to distinguish between duties owed to the company 'in its own right' and 'as trustee'. Limitation periods for breach of equitable duty of care and skill apply by analogy with the limitation period for breach of common law duty of care and skill and by analogy with s 180 of the Corporations Act.
The full text is available to signed-in members, including the 82 later cases that cite this judgment.
8 of the 82 citing cases carry a classified treatment. How each court treated it is available to signed-in members.