It has been reported that Sir Paul Judge, a former director at mining company ENRC, is suing the firm over alleged defamation regarding a breach of his fiduciary duties after ENRC issued a press release in July 2013 stating Sir Paul leaked confidential information.
So what are the fiduciary duties of a former non-executive director in relation to confidential information? A non-executive director has the same duties and responsibilities as a full time executive director. As such the non-executive director will be responsible in the same way as any other director for the decisions and powers taken by the board. This duty of confidentiality exists under common law, contract and statute
Where it is clear a breach of the duty of confidentiality has taken place as a result of misuse of confidential information, then there are actions a business can take:
Published on 17/01/2014