Board members are trusted with a large amount of confidential information by their companies as part of their fiduciary duties as directors. Some of this why not check here information is non-public material – the disclosure of which is governed by corporate policies and law – however, some of it, particularly in the context of for-profit companies is highly personal and sensitive. Some of the information discussed during boardroom discussions is highly sensitive and crucial that creates a trust issue when it’s time protect the information from leaks.
Leaks can be devastating for companies and their employees. They are not just able to damage the financial performance of the business but also the image of the directors themselves. Depending on the nature and circumstances of the leak, directors may be exposed to civil or criminal liability.
It is essential to ensure that all signees are aware of the nature of information that must remain private and agree to adhere to these conditions. This includes identifying the exact information that must be protected and clearly defining the limitations on disclosure of that information, for example, that it should only be divulged to other directors or the company’s sponsor.
It is also important to provide a detailed and comprehensive Confidentiality Policy to all directors, and their sponsors for constituency directors, before they start their service. This will ensure that they are aware of their obligations and will help create a culture that values the commitment to and protection of confidential information as one of the most fundamental aspects of directors’ responsibilities and obligations.
