How to Protect Confidential Documents for Boards of Directors

Board members are privy an immense amount of confidential information because they fulfill their fiduciary duty. This information typically has business and personal elements and implications. It could include sensitive boardroom discussions of corporate executives, strategic initiatives, potential acquisitions competitive and legal threats, as well as the deliberations of other board members. This kind of information is not legally protected, but it can be used to violate directors’ fiduciary duties and expose the company and directors to significant legal liability.

The board should adopt an official confidentiality policy that covers any confidential information it receives and discuss. The policy should be included in the member’s handbook. The board should require all members sign the policy and agree to adhere to its rules. The board should be clear that the policy will be in force even after the term of a director has ended and that if a director is found to have breached the policy or violated it, they www.dataroomabout.com/advantages-of-having-a-virtual-data-roo will not be able to serve on the board in the future.

The board should limit the number of physical copies, and use a board portal with security that is enterprise grade to share sensitive documents. This will ensure that the information is not accessible to unauthorized people and is not easily lost or stolen. The ideal scenario is that the platform will allow users to set print and download rights, watermarks that include an expiration date and a time stamp, and reports that provide an overview of who has opened the documents, printed them or downloaded them.