Regardless of the size of the board or company, it is essential that boards safeguard confidential documents. This means that the information is not accessible to anyone who is not authorized to access it. This prevents information leakage which could harm the business or cause an erosion of confidence.
In order to solve these issues it is imperative to establish an overall policy. In the ideal scenario, the policy should declare that directors are required to protect all non-public information they receive or obtain while serving on the board. The policy should clearly define what constitutes confidential information and include a clear statement that any breach of confidentiality can be considered to be a violation of a director’s fiduciary obligation to the company.
The policy should also outline how the board will respond to a breach. Generally speaking the board must consider the various responses, from censure by other directors or, in extreme cases removal from the board. This will ensure that the policy will be considered seriously and enforced https://dataroomabout.com/virtual-data-room-pricing-for-getting-the-best-option/ when necessary.
In order to implement a robust board security system for documents is vital that the secretary uses an appropriate board distribution and management system. These systems can be put in place within minutes and offer the administrative and digital rights management (DRM) controls needed to support the board’s secretary in distributing board documents securely. The system may also provide the option to set up specific access privileges for each individual including viewing and printing limitations, expiry dates for PDFs, visible watermarks and the ability to view who has viewed a particular document.