Board members are trusted with a great deal of confidential information by their companies as part of their duties as fiduciary directors. Some of this information is important non-public information – the disclosure of which is regulated by law and company policies – while some of it is, especially in the case of for-profit businesses is extremely sensitive and personal. Some of the information that is discussed in boardroom discussions is highly sensitive and crucial and creates a trust issue when it’s time to protect that information from leaks.

Leaks can be devastating to businesses and the individuals involved, and may not only hurt the company’s financial performance, but could also hurt the reputation of individual directors. Depending on the type of the leak (and the circumstances surrounding it) they may expose directors to criminal or civil liability.

The best way to secure confidential documents for boards is to ensure that all parties to the confidentiality agreement know what information is required to remain confidential, and have agreed to abide by those terms. This involves identifying the information to be protected and clearly defining the restrictions on disclosure. For instance, it may be that the information can only be disclosed to the company’s sponsor or other directors.

It is also important to establish a thorough and complete Confidentiality policy for all directors, or their sponsors for directors with constituency status, before they start their service. This will help them understand their responsibilities and help create a culture that values confidentiality as a fundamental aspect of data protection and efficient workflow the director’s duties.