NewsHK
An opinion article contends that the United States Congress operates without a broad legal fiduciary duty, a standard that binds boards of directors in publicly traded companies and trustees in financial advisory relationships.
The author, Carol Roth, asserts that while Congress manages the largest budget in the world and oversees the largest number of employees in the U.S., its members are not legally obligated to act in the best interests of their constituents in the same way private sector leaders are.
In most large businesses, a board of directors is established to represent stakeholders through a fiduciary duty, which is a legal obligation to act honestly, with care, and without conflicts of interest.
This relationship carries consequences, as fiduciaries can be sued for negligence, bad judgment, or prioritizing their own interests over those they represent.
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