Board members are trusted with a great deal of confidential information from their companies as part of their duties as fiduciary directors. Certain of this information falls into the category of material non-public data, whose disclosure is subject to the law and corporate policies. Other information, particularly in the case of companies that are not for profit, is highly sensitive and private. Certain information discussed during boardroom meetings is highly sensitive and crucial and creates the possibility of trust issues when it’s time to protect this information from leaks.

Leaks can be devastating for companies and their employees. They can not only impact the financial performance of the business and its directors, but also the reputation of the individual directors. Depending on the nature of the leak (and the circumstances surrounding it) they could expose directors to criminal or civil liability.

The best way to safeguard confidential documents for boards is to ensure that all parties to the confidentiality agreement know the information that must remain confidential, and that they have signed a commitment to adhere to those conditions. This involves identifying the information that needs to be protected and clearly defining restrictions on disclosure. For instance it could be that the information can only be divulged to the company’s sponsor or other directors.

Additionally, it is important to advice on virtual data room pricing for getting the best option include a thorough and thorough Confidentiality Policy that is given to all directors (and their sponsors in the case of constituency directors) before they are appointed. This will ensure that they are aware of their obligations and will help create an environment that promotes the adherence to and the protection of confidential information as one of the most fundamental aspects of a director’s responsibility and obligations.