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Board members are trusted with a great deal of confidential information from their employers as part of their fiduciary duty as directors. Some of this information falls into the category of important non-public data, whose disclosure is restricted by corporate policies and law. Other information, particularly when it comes to companies that are for-profit, is highly sensitive and private. Some of the information that is discussed in boardroom discussions is highly sensitive and crucial, which creates an issue of trust when it’s time to safeguard this information from leaks.
Leaks can be devastating to a company and its people. They may not only affect the financial performance of the company, but also the reputation of directors. The nature of the leak (and the circumstances that lead up to it) they could expose directors to criminal or civil liability.
The best way to secure confidential documents for boards is to make sure that all signees of the confidentiality agreement are aware of what information is required to remain confidential, and that they are willing to abide by these conditions. This includes identifying the information to be secured and clearly defining any restrictions on disclosure. For example it could be that the data can only be divulged to the company’s sponsor or other directors.
Additionally, it is important to include a thorough and thorough Confidentiality policy that is made available to all directors (and their sponsors in the case of directors who are constituency) prior to the time they begin their tenure. This will help them understand their responsibilities as directors and create a culture where confidentiality is viewed as an essential element of the director’s duties.
