Date published: 13/07/2024
Do directors have to sign a confidentiality agreement?
I have just been elected to the board of directors of my condominium. I realize that, as part of my duties, I receive information and documents on co-owners that are extremely confidential. This is the case, in particular, for the health problems of a co-owner. The latter cannot evacuate the building by its own means in the event of a fire and requires the assistance of firefighters in such circumstances. I also have access to the email addresses of the co-owners and even the codes of the alarm systems of some apartments. Obviously, I am a person anxious to safeguard confidentiality of this information. However, I do not know if my colleagues on the board share the same values. Question: As a director, should we sign a document that would ensure the confidentiality of our co-ownership information?
Answer: "What happens on the board must stay on the board." Discretion and abstention from providing inside information are all obligations that are likely to give rise to the liability of a director in the event of non-compliance with them.
As part of their mandate, the directors are provided with confidential information and documents to ensure the administration of the co-ownership and decision-making within the framework of the deliberations of the board of directors.
Thus, directors must expressly acknowledge that during their term on the board of directors, they will be entrusted with confidential information and documents, the disclosure of which could harm the rights of the syndicate and the co-owners. The union's obligation to maintain the confidentiality of the information in question is part of its mission.
In the circumstances, it is imperative that each director sign a confidentiality agreement agreeing and undertake:
- not to disclose or reveal in any manner whatsoever to any person confidential information or information relating to the affairs of the syndicate that has been disclosed to him for the sole benefit of the co-ownership, by reason of and during his term of office as a director of the syndicate;
- privacy of the co-owners and occupants of the building;
- ensure the protection of personal information held by the syndicate;
- not to reveal any personal or confidential information that may come to his or her knowledge in the course of his or her duties unless duly authorized to do so;
- not to use for his own benefit or for the benefit of a third-party information obtained as a result of his functions;
- to use this information only in the course of its duties;
- to dispose of any shredded paper and any computer files by logical destruction and physical erasure in a secure manner if they contain personal information;
- to respect the obligations of confidentiality laid down in paragraphs 1 to 6, in the event of his resignation or dismissal as a director of the syndicate or in the event of a non-renewal of his mandate;
- to remit to the person designated by the board of directors all documents and other objects held or controlled by the board of directors relating to the syndicate of co-owners, at the end of his term.
WHAT YOU SHOULD KNOW! Every director is required to respect the confidentiality of the information received in the performance of their duties. They may not use the information obtained in the course of their duties for their own benefit or for the benefit of a third party, unless they are validly authorized to do so.
WHAT TO KEEP IN MIND: By clicking on this hyperlink, it is possible to find a suggested privacy statement template that can be adapted to the specifics of your co-ownership.
WARNING! The penalty resulting from this prohibition is the recourse to damages and the restitution of the associated profit, pursuant to articles 323 and 2146 of the Civil code of Quebec.