Maintaining Director Confidentiality

Leaks of confidential information (whether related to the company’s products, strategy, or internal affairs, and whether disclosed to the public or to private parties) may give a company’s competitors a leg up and jeopardize relations with customers, suppliers, and investors. Safeguarding confidential information, particularly in the boardroom, is critical to any company’s success. Directors have a fiduciary duty to maintain confidentiality, and inappropriate disclosure, whether intended or inadvertent, can violate federal securities laws. Directors rely on confidentiality to facilitate candid deliberations with fellow board members.

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