How to Protect Confidential Documents for Boards

Board members are trusted with a lot of confidential information from their employers as part of their fiduciary responsibilities as directors. Some of this information is important non-public information – the disclosure of which is controlled by corporate policies and law – however, some of it particularly in the context of for-profit enterprises, is highly sensitive and personal. The fact that some of the information that is discussed in boardroom discussions is both sensitive and material is a significant trust issue in the context of safeguarding that information from leaks.

Leaks can be devastating to companies and their employees. They not only impact the financial performance of the business and its directors, but also the reputation of directors. Depending on the type and circumstances of the leak, directors may be liable to criminal or civil liability.

The best way to secure confidential documents for boards is to www.dataroomabout.com make sure that all parties signing the confidentiality agreement understand exactly what information is required to be kept private, and have agreed to adhere to these terms. This requires identifying the information to be protected and clearly defining the restrictions on disclosure. For instance, it may be that the information may only be disclosed to the company’s sponsor or other directors.

In addition it is essential to have a strong and comprehensive Confidentiality Policy which is made available to all directors (and their sponsors in the case of directors who are constituency) before they are appointed. This will help them understand their responsibilities, and establish an environment where confidentiality is viewed as a fundamental aspect of the director’s duties.