It is essential that boards protect confidential documents regardless of the size of their board or the company. The documents are secured to ensure that it can’t be accessed by anyone without authorization. This could prevent information leakage that could impact the business, or cause a loss in confidence.

In order to deal with these issues, it is important to have an extensive policy. The ideal policy would stipulate that directors are bound to protect all non-public information that they obtain or obtain while on the board. The policy should also clearly define what constitutes confidential information and include a clear explanation of why a breach of confidentiality is considered to be a violation of a director’s fiduciary duty to the company.

The most important thing is that the policy should specify the manner in which the board will react to a breach. The board should, in general look at a range of responses, ranging from censure from fellow directors to, in the worst case, removal from board. This helps to ensure that the policy is respected and will be enforced in the event that the need arises.

It is vital that the secretary use the board management and distribution software to establish an effective document security system. Such systems can be put in place in just a few minutes and provide the administrative and digital rights management (DRM) controls that are required to support the board’s secretary in distributing documents to the board. The system may also provide the option of setting specific access rights for each user including printing and viewing restrictions, PDF expiry Resources https://dataroomabout.com/virtual-data-room-pricing-for-getting-the-best-option/ dates visible watermarks as well as the ability of reviewing who has viewed a document.