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It is common among boards to sign a confidentiality agreement by board members? What should the agreement include? Do all board members need to sign it?
What will happen if one or few board members do not sign it? Do they still have right to review corporate documents or not?
I agree with you.
What would you say if a board have already passed a resolution (by majority) that board members who want to review co-op finance need to sign first a confidentiality agreement? It was done after I as a new board member wanted to know co-op financial situation. They made many obstacle for me to review books and finally made that resolution about the confidentiality agreement.
I need to say that I am the only one on the board interested in the co-op finances. The rest of the board members do not want to know financial information. So probably I would be the only one who will need to sign the confidentiality agreement. Isn’t that discrimination?
What if I do not sign and still having fiduciary responsibility want to review co-op finances?
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Personal shareholder matters should be kept confidential -- otherwise, everything can be shared with the Shareholders.
And infact, if there is noting to hide -- what is the need for a confidentiality agreement? When this was attempted by a Board member (who had reason to keep things secret) on advice from thier Lawyers -- board members refused to sign.
For about five years we had a "secret" board and we are still recovering from the problems that resulted in this board who did not abide by the bylaws, did not keep the board min, and did favors for friends -- such as no permits for renovations.... Like Washington, the more transparancy -- the better the Board. We now have complete transparancy -- and we have seen a very big diffrience in both the way the building is maintained -- and our finances.
The Board member who most wanted the confidentiality agreement -- as it has turned out -- is the biggest problem in our Coop. On legal advice, Board members refused to sign this agreement -- and that was the end of that..
As a Board member, who can be held legally responsibile for the decisions you make -- I should think you would want complete transparacy.
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