Director confidentiality agreements

Our legal team provides expert advice and guidance on director confidentiality agreements, ensuring that employers are protected from potential breaches of confidentiality by directors who have left the business.

• Directors and other senior executives play an important role in your business and often have access to sensitive information and data, which could potentially pose a risk if not managed appropriately.
• Director Confidentiality Agreements are legally binding documents and can help to protect your business interests, should any disputes arise in the future.
• Moore Barlow can help with every legal aspect of employing senior executives and directors, including assessing the need for and assisting with director confidentiality agreements to minimise risk.

The contribution that senior executives and directors make to your business can be significant. This also means that if one or more of them leave the business in the future, this can also have a big impact on many aspects of your company.

In most cases, senior employees, who may also be directors and shareholders, will part on good terms as they move on to other things, However, if there is any kind of dispute involved, this can put business interests at risk if you don’t have appropriate director confidentiality agreements in place.

Senior departures within your business can be complex and require a specialist legal approach to make sure that your business is protected. Our solicitors at Moore Barlow have a high level of experience and understanding in this area of employment law and can provide the specialist support required to minimise risk and ensure that all of the legal bases are covered.

What is a director confidentiality agreement?

A director confidentiality agreement is a legal contract between a company and its director that requires the director to keep certain information confidential.

The role of director confidentiality agreements

Any company director has a duty of confidentiality to that company, which means that they are obliged not to share or pass on any confidential information that they have gained during their directorship, without the express permission of the business, and must use that information only for the benefit of the company. This duty of confidentially applies to the board of directors as a whole, along with any individual director.

However, if a director departs from their role and there is a dispute involved, it can leave the business in a vulnerable position. This is why additional legal protection is advised in the form of director confidentiality agreements that will outline specific terms that the director agrees to abide by, including what will happen once they have left the business.