District of Columbia Board of Directors Confidentiality Policy

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Multi-State
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US-1060BG
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Board members have limits on how they can share information and with whom they may share it. Maintaining confidentiality means that board members must maintain the confidentiality of any personal or sensitive information they acquire during their service to the board. Board members are in a fiduciary relationship with the corporation. This means that they are obliged to act honestly and in good faith in respect of the corporation. The obligation has many components, including a duty to avoid conflicts of interest and a duty to avoid abusing their position to gain personal benefit. One component of board members' fiduciary obligation is a duty to maintain the confidentiality of information that they acquire by virtue of their position.
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FAQ

If you believe that there has been a breach of confidentiality, the first step is usually to fully identify and evidence this. You will then usually want to confront the employee about this, explaining that you are aware of a breach, specifically what the breach is and what the consequences of that breach are.

In keeping with their fiduciary duties, board members shouldn't disclose information that they've received as part of their position on the board. Board members usually have a large network of constituents, network associates or other individuals to which they have some degree of loyalty.

A confidentiality agreement should include a clear definition of the confidential information, scope of the agreement, obligations of the receiving party, the duration of the contract, any exceptions to confidentiality, and the consequences of a breach of the contract.

A board member who reveals confidential information without the approval of the board is, in essence, acting beyond the extent of their authority. Therefore, they can be found personally liable for their actions.

Issue a Letter Addressing the Breach The letter should remind the member of their fiduciary duty and explain in clear terms that they are not allowed to reveal confidential matters. This is otherwise known as a censure. If that does not get their attention, you can follow up with a cease-and-desist letter.

Here is what you need to do to protect your business interests. Get a clear picture of the situation. ... Notify the affected parties. ... Implement a containment plan. ... Investigate the cause and review confidentiality policies.

Board members also have limits on how they can share information and with whom they may share it. Maintaining confidentiality also means that board members must maintain the confidentiality of any personal or sensitive information they acquire during their service to the board.

Whatever I see or hear of a confidential nature or that is confided to me in my official capacity will be kept ever secret unless revelation is necessary in the performance of my duty.

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District of Columbia Board of Directors Confidentiality Policy