It is essential that boards secure confidential documents, regardless of the size of their organization or board. The information is protected so that it can’t be accessed by anyone without authorization. This can prevent information leakage which could affect the business, or cause a loss in confidence.

A comprehensive policy is crucial for addressing these concerns. The ideal policy would stipulate that directors are bound to keep secret all non-public information that they obtain or acquire while on the board. The policy should clearly define confidential information, and also include a declaration that a breach of confidentiality is considered to be a breach of director’s fiduciary duties towards the company.

The policy should also specify how the board will respond to the www.dataroomabout.com/advantages-of-having-a-virtual-data-room/ occurrence of a breach. Generally speaking the board must consider a range of responses including censure by other directors to, in extreme circumstances removal from the board. This helps ensure that the policy is considered seriously and is enforced if the need arises.

In order to implement a robust board security system for documents it is crucial that the secretary has an appropriate board management and distribution system. These systems can be set up in minutes and provide the administrative controls and digital rights management (DRM) which are essential to assist the board secretary in safely distributing the board documents. The system may also provide the possibility of setting up specific access rights for each person with viewing and printing restrictions, PDF expiry dates visible watermarks as well as the ability to see who has viewed a document.