A fiduciary is a person or entity that acts legally on behalf of or for another person or entity. Therefore, inherent in the fiduciary responsibility definition is characteristics such as due care, trust, good faith, fair dealing, honesty, and loyalty. For instance, the board of directors of a corporation owes a fiduciary duty to its shareholders or investors. If the board, or an individual member of the board, self-deals, or acts in a self-interested manner that is contrary to the best interests of the corporation, then a breach of the fiduciary duty occurs. Such a breach might also occur when a board member has a conflict of interest with a transaction or contract being considered by the board. Involvement in the board's decision as to whether to enter into the transaction or contract may result in divided loyalties for the conflicted board member. The only way to avoid a breach of the fiduciary duty in this circumstance might be for the affected board member to abstain from voting on the transaction or contract.