The limits of fiduciary duties in business organizations: the evidence from limited partnerships in the US and UK

The fiduciary duty regime are regarded by law common-law scholars as an efficient and effective legal institution for cutting transaction costs in organized business activities, since the case-by-case practice of the courts can flexibly fill the gap between the market participants and then save the contractual costs of negotiating in commercial enterprises. This article aims to explore the limits and boundary of fiduciary duties in business organization laws by reviewing and analysing its evolution in the reform of limited partnership legislation of the United States and the United Kingdom, by which this article will points out the limitation of fiduciary duties in the context of transaction cost economics and its practical implication