www.dataroomabout.com/the-reality-with-the-data-room-software
In the course of fulfilling their fiduciary duties as directors Board members are entrusted with a lot of confidential information regarding their companies. Certain of the information falls under the category of non-public material data, which is subject to the corporate policies and law. Other information, especially in the case of companies that are not for profit, is highly sensitive and private. The fact that some of the information that is discussed in boardroom discussions is sensitive and also important can create a trust issue in the context of protecting that data from leaks.
Leaks can be disastrous to any business and those involved, and may not just affect the financial performance of a company, but can also affect the reputation of individual directors. Depending on the type and circumstances of the leak, directors may be subject to criminal or civil liability.
It is essential to ensure that all signees know what information is confidential and agree to follow these terms. This involves identifying the specific information to be protected, and clearly defining the restrictions on the disclosure of this information, such as that it can only be shared with other directors, or the company’s sponsor.
It is also essential to give a comprehensive and complete Confidentiality policy for all directors, or their sponsors in the case of constituency directors, before they begin their duties. This will ensure that they are aware of their obligations and help establish an environment that encourages commitment to and security of confidential information as one of the most fundamental aspects of directors’ responsibilities and duties.