In today’s economy, where so much business is transacted remotely or on the go, corporations would be well advised to focus on communications with their outside directors. And outside directors would be well served to consider the personal disclosure burdens and risks they may face as a result of their board service. Corporate directors today are frequent travelers who often serve on multiple boards. To accommodate their lifestyles, corporations often send board books and other sensitive communications to directors by any means available, including via the director’s private or “day-job” e-mail accounts. In addition to the security risk this practice creates, many directors do not realize these accounts will be vulnerable to discovery in the event of litigation. Companies (and directors) confronted with this reality need to be mindful to balance the desire for security against the risks and burdens associated with the possibility of intrusive discovery into the personal e-mail accounts of their outside directors.
The Practice
The results of a recent Thomson Reuters comprehensive global survey of corporate counsel and company secretaries about board communications and director behavior are unsurprising. The survey revealed that corporate directors travel frequently, live across the world from their companies, and must often receive board updates from afar and on the go.1
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