It is important that boards protect confidential documents, regardless of the size of their organization or board. This means that the documents is not accessible to anyone who isn’t authorized to do so. This will help to avoid information leaks that could harm the business or lead to loss of trust.
A comprehensive policy is crucial to address these concerns. The policy should ideally state that directors must guard any material non-public data they receive or acquire when they are on the board. The policy should clearly define confidential information, and include a statement that a breach in confidentiality is a violation of a director’s fiduciary duty to the company.
Most importantly, the policy should define what the www.dataroomabout.com/the-reality-with-the-data-room-software/ board’s response to any breach. The board should, in general, consider a variety of responses, ranging from a censure from fellow directors to, in the worst case removal from the board. This will ensure that the policy is taken seriously and will be enforced if the need arises.
To establish a solid board security system for documents is vital that the secretary utilizes a dedicated board management and distribution system. These systems can be set up within minutes and provide administrative controls and digital rights management (DRM), which will assist the secretary of the board in securely distributing the board documents. The system will give the option of establishing specific access rights for each individual, with viewing and printing restrictions along with PDF expiry dates visible watermarks and the ability to view who has had access to the document.