Corporations may make use of institutions as executor, trustee, or administrator in order to manage their financial assets in a fiduciary manner. These institutions are therefore referred to as corporate fiduciaries or singularly known as corporate fiduciary. Institutions or organizations are entrusted with a corporation’s financial assets, to administer and manage it as it serves in the best interests of a corporation. This may include disbursing or accumulating assets that prove to be advantageous for the corporation.
The selection of a corporate fiduciary may be done through personal appointment by the corporation or through court appointment. The latter is done as a means of protecting assets under the law while the former is done upon the decision of a corporation’s chief officers or its board of directors. Either appointment do not deviate from the obligation of a corporate fiduciary in making decisions that are in the best interests of the corporation in terms of its financial assets.
As previously mentioned, the corporate fiduciary is in possession of various titles such as executor, administrator, etc. such titles are not given arbitrarily but refer to the extent of a corporate fiduciary’s powers. A corporate fiduciary is given the title executor if he or she is given the task of estate management. In the case wherein a corporate fiduciary is in control of assets over an individual who has been ruled by the courts to be mentally or physically unable, he or she is given the title trustee. This trustee is usually appointed by a court of law.