How to Protect Confidential Documents for Boards

Board members are entrusted with a great deal of confidential information from their employers as part of their duties as fiduciary directors. Some of this information is classic private information, the disclosure of which is governed by the law and policies of the company – while other information particularly in the context of for-profit enterprises, is highly sensitive and personal. The fact that some of the information that is discussed during boardroom discussions is both sensitive and important is a significant trust issue when it comes to protecting the information from leaks.

Leaks can be disastrous to any business and those who are affected. It’s possible that leaks will not only impact the company’s financial performance, but could also hurt the reputation of individual directors. Depending on the nature of the leak (and the circumstances that led to it) they could expose directors to civil or criminal liability.

The best way to secure confidential documents for boards is to make sure that all signers of the confidentiality agreement know what information must remain confidential, and are willing to abide by those terms. This means identifying the information to be protected and clearly defining the restrictions on disclosure. For example it could be that the information may only be divulged to the company’s sponsor or other directors.

In addition it is essential to include a robust and thorough Confidentiality Policy that is provided to all directors (and their sponsors in the case of directors who are constituency) before they start serving. This will ensure that they are aware of their responsibilities and help to create a culture that values the adherence to and security of confidential information as one of the most fundamental www.dataroomabout.com aspects of a director’s responsibilities and duties.