In today’s investment world, private equity firms, investment managers and other investors often acquire a substantial interest in a business and, as a consequence, earn the right to put “their people” on the company’s board. That person then becomes a “dual fiduciary”someone with fiduciary obligations to his or her investment firm and also to the “portfolio” company to which the person is appointed to serve. Of course, that person is often well-versed in the portfolio company’s business precisely because of the work of the investment firm, and the person can therefore bring expertise and value to the portfolio company’s board. But because the person owes duties to both entiti…

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