Equity polices loyalty with unusual severity, and this chapter traces how that severity plays out from principle to remedy. It opens with the rule itself and the relationships recognised as fiduciary, before examining what counts as an unauthorised profit — director's fees obtained through a trust shareholding, commissions from third parties, and bribes. It then turns to the escape routes: how a profit can be authorised, when a trustee may be remunerated, and the recovery of properly incurred expenses, followed by the remedies of an account of profits, the constructive trust and the discretionary equitable allowance. It closes with the self-dealing and fair-dealing rules, which govern transactions between a trustee and the trust itself or its beneficiaries.
