Equity does not ask whether a fiduciary acted in good faith or caused any loss; it imposes strict liability the moment loyalty is compromised. This chapter begins with the no-conflict and no-profit rules themselves — the relationships they bind, the standard of liability and the elements of a claim — before showing the no-profit rule in operation, from unexploitable opportunities and bribes to directors' fees and indirect gains. It then examines the self-dealing and fair-dealing rules governing transactions between trustee and trust, and the limited routes to legitimacy: trustee remuneration under the Trustee Act 2000, recovery of expenses, and authorisation by the trust instrument, the court or properly informed beneficiaries. It closes with the remedies of rescission, account of profits and equitable compensation, the no-double-recovery principle, the equitable bars to rescission and the limitation rules for breach of trust.
