It is essential that boards secure confidential documents regardless of the size of their company or board. This means that the information cannot www.dataroomabout.com/advantages-of-having-a-virtual-data-room/ be accessed by anyone who is not authorized to access it. This will help to avoid information leaks that could impact the business or cause the loss of trust.
To tackle these issues, it is important to have a comprehensive policy. In the ideal scenario, the policy should declare that directors are required to keep secret all non-public information that they obtain or obtain while serving on the board. The policy should also clearly define what constitutes confidential information and include a clear explanation of why any breach of confidentiality can be considered a violation of the director’s fiduciary responsibility to the company.
The policy should also specify the manner in which the board will react to any breach. Generally speaking the board must consider different options such as censure from fellow directors to, in extreme instances removal from the board. This will ensure that the policy is viewed seriously and will be enforced if the need arises.
To establish a solid board document security system, it’s essential that the secretary has an appropriate board distribution and management system. These systems can be set up within minutes and provide administrative controls and digital rights management (DRM), which are needed to assist the secretary of the board in securingly distributing the board documents. The system can also give the possibility of setting up specific access rights for each person including viewing and printing restrictions, PDF expiry dates, visible watermarks and the ability to view who has viewed a document.