How to Protect Confidential Documents for Boards

Board members are entrusted with a lot of confidential information from their companies as part of their www.dataroomabout.com/advantages-of-having-a-virtual-data-room/ fiduciary duty as directors. Certain of this information falls under the category of material non-public information, whose disclosure is subject to the law and corporate policies. Other information, particularly when it comes to companies that are for-profit, is highly sensitive and private. Some of the information discussed during boardroom meetings is highly sensitive and crucial and creates an issue of trust when it’s time to safeguard the information from leaks.

Leaks can be devastating to companies and their employees. They are not just able to damage the financial performance of the business as well as the reputation of the directors themselves. Depending on the type of the leak (and the circumstances surrounding it) they may expose directors to criminal or civil liability.

It is important to ensure that all signees understand the nature of information that must remain private and that they agree to these terms. This means identifying the particular information that must be protected and clearly defining any restrictions on disclosure of that information, such as that it is only shared with other directors, or the company’s sponsor.

It is also essential to present a clear and robust Confidentiality policy to all directors, and their sponsors in the case of directors of the constituency, prior to when they begin their duties. This will help them understand their responsibilities, and establish an environment in which confidentiality is considered an essential element of the director’s duties.