How to Protect Confidential Documents For Boards
It is vital that boards secure confidential documents, regardless of the size of their company or board. The information is protected so that it cannot be accessed by anyone without authorization. This helps to prevent information leakage that may affect the business or cause an erosion of trust.
To deal with these issues it is essential to have an overall policy. In the ideal scenario, the policy should clarify that directors are obliged to keep confidential any non-public information they acquire or obtain while serving on the board. The advice on virtual data room pricing for getting the best option policy should clearly define confidential information and also include a declaration that a breach of confidentiality is considered to be an infraction of the director’s fiduciary duties towards the company.
The policy should also define how the board will react to a breach. The board should, in general be able to consider a variety responses, ranging from censure from fellow directors, to, at a minimum, removal from board. This will ensure that the policy is viewed seriously and enforced should the need arises.
To establish a solid board document security system it is essential that the secretary utilizes a dedicated board management and distribution system. Such systems can be implemented within minutes and offer the administrative and digital rights management (DRM) controls required to assist the secretary of the board in securely distributing board documents. The system gives the option of setting up specific access rights for each individual, with limitations on viewing and printing as well as the date of expiry for PDFs, visible watermarks, and the ability of viewing who has had access to the document.