secret profit


Also found in: Financial.

secret profit

profit made by an agent that is not revealed to the principal. An agent, being in a fiduciary position as against the principal, is not permitted to make a profit out of the performance of his duties as an agent unknown to the principal. It is his duty to account for all such profit; failure to do so will render him liable to dismissal and give the principal a ground for refusing to pay him his commission. The secret profit itself must be disgorged under the law of restitution.
Collins Dictionary of Law © W.J. Stewart, 2006
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That secret profit comes in the form described in Rule 5H-26.003(7) as an undisclosed "commission, fee, gratuity, or any other form of compensation." There are various forms of fraud or secret profit-taking.
He failed to provide a good standard of service, as a consequence of incorrectly describing items in bills as 'disbursements' when they contained an element of profit, and thereby making a secret profit; contrary to the code."
He said: "The charges relate to an alleged conspiracy to defraud the Metropolitan Police Service by dishonestly participating in a scheme to overcharge the MPS for flat rentals in Leeds with the intention of making a secret profit thereby and distributing monies so raised among themselves."
Other changes are likely to include a clearer definition of the terms 'luck money' and 'secret profit'.
MANDY ALLWOOD, who miscarried octuplets in 1996 after a highly publicised pregnancy, today won her High Court action against her former publicist Max Clifford who she alleged made a secret profit out of her story.
Cartels create a secret profit which can make millions of pounds for those involved, Mr Latham said.
Such duties include acting in the best interests of the company,not making a secret profit, non-competitionetc.
Mr Crystal alleged that while Clifford was working for Allwood, he made a "secret profit" at her expense by signing a separate contract for himself with the News of the World.
The company secretary has a fiduciary duty to the company and is accountable to the company for any secret profit made because of his position.
DBS managing director Henry Beeby said: "The code is intended to stop people from making a secret profit at someone else's expense, which no-one in the industry can
Mr Dooley was cleared of encouraging one investor into the scheme without disclosing that he would make a secret profit.
The hearing was told the deal did not go ahead but Mr Dutton commented: ``He did not receive a secret profit but he tried to do so.''