The Non Disclosure Agreement For Board Members is a critical document required whenever a new board member joins a company in Saudi Arabia. It is designed to protect confidential information that board members access during their tenure, including strategic plans, financial data, trade secrets, and sensitive corporate information. The agreement must comply with Saudi Companies Law, Capital Market Authority regulations, and other relevant Saudi Arabian legislation. It is particularly important given board members' extensive access to sensitive information and their fiduciary duties under Saudi law. The document typically needs to be in place before the board member attends their first board meeting or receives any board materials, and its obligations often survive the termination of board membership.
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1. Parties: Identification of the company and the board member, including their full legal names, addresses, and registration details
2. Background: Context of the agreement, including the board member's appointment and need for confidentiality
3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Board Materials', and 'Trade Secrets'
4. Scope of Confidential Information: Comprehensive description of what constitutes confidential information in the context of board duties
5. Confidentiality Obligations: Core obligations regarding non-disclosure, protection, and handling of confidential information
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including legal requirements and board duties
7. Security Measures: Specific measures required to protect confidential information, including digital security requirements
8. Return of Confidential Information: Obligations regarding the return or destruction of confidential information upon termination
9. Duration and Survival: Term of the agreement and survival of obligations after board membership ends
10. Breach and Remedies: Consequences of breach and available remedies under Saudi law
11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes
1. Insider Trading Provisions: Additional provisions for listed companies regarding handling of price-sensitive information
2. Digital Communications: Specific provisions for electronic communications and digital board materials
3. Third Party Information: Provisions regarding confidential information belonging to third parties
4. International Transfer of Information: Required for companies with international operations or board members residing abroad
5. Shariah Compliance: Specific provisions ensuring compliance with Shariah principles where relevant
6. Conflict Resolution: Alternative dispute resolution mechanisms before resorting to courts
1. Schedule 1: Categories of Confidential Information: Detailed list of types of confidential information specific to the company
2. Schedule 2: Security Protocols: Specific security measures and protocols for handling confidential information
3. Schedule 3: Permitted Recipients: List of persons or entities to whom disclosure is permitted under specific circumstances
4. Appendix A: Form of Confidentiality Undertaking: Template for additional confidentiality undertakings required from third parties
5. Appendix B: Data Handling Procedures: Detailed procedures for handling, storing, and disposing of confidential information
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Healthcare
Technology
Manufacturing
Real Estate
Energy
Telecommunications
Professional Services
Education
Retail
Mining
Construction
Transportation
Agriculture
Entertainment
Relevant Teams
Legal
Corporate Governance
Board Secretariat
Compliance
Risk Management
Corporate Affairs
Executive Office
Internal Audit
Investor Relations
Relevant Roles
Board Member
Independent Director
Executive Director
Non-Executive Director
Board Chairman
Company Secretary
General Counsel
Chief Executive Officer
Chief Financial Officer
Corporate Governance Officer
Legal Director
Compliance Officer
Board Committee Member
Audit Committee Member
Risk Committee Member
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