Confidentiality of company's information: Challenges for nominee director

Company directors are subject to certain fiduciary duties discussed under common law and in statutory provisions. Directors’ fiduciary duties include duty to protect the confidentiality of company information. Any information that belongs to the company is to be used only by the company for the c...

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Main Authors: Hassan, Halyani, Abd Ghadas, Zuhairah Ariff
Format: Article
Language:English
English
Published: UPM Press 2017
Subjects:
Online Access:http://irep.iium.edu.my/65068/
http://irep.iium.edu.my/65068/9/65068%20Confidentiality%20of%20Company%20Information.pdf
http://irep.iium.edu.my/65068/8/65068%20Confidentiality%20of%20Company%20Information%20SCOPUS.pdf
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author Hassan, Halyani
Abd Ghadas, Zuhairah Ariff
author_facet Hassan, Halyani
Abd Ghadas, Zuhairah Ariff
author_sort Hassan, Halyani
building IIUM Repository
collection Online Access
description Company directors are subject to certain fiduciary duties discussed under common law and in statutory provisions. Directors’ fiduciary duties include duty to protect the confidentiality of company information. Any information that belongs to the company is to be used only by the company for the company. Such information is considered the property of the company and it must be used to the advantage of the company. The objective of this paper is to discuss the duty of nominee directors concerning the confidentiality of company information. Nominee directors who actually represent their nominators on a board of directors will find their duty challenging as they might be expected by their nominators to provide them with certain company information. The study is based on doctrinal and statutory analysis of selected jurisdiction as well as cases based on various jurisdiction. It is argued that nominee directors are in a vulnerable position as directors who are representing their nominators at the same time. Though it has been clearly legislated that their loyalty is to the company they should to a certain extent be allowed to disclose information that would not jeopardise their companies.
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spelling iium-650682018-09-13T01:09:04Z http://irep.iium.edu.my/65068/ Confidentiality of company's information: Challenges for nominee director Hassan, Halyani Abd Ghadas, Zuhairah Ariff K Law (General) KPG Malaysia Company directors are subject to certain fiduciary duties discussed under common law and in statutory provisions. Directors’ fiduciary duties include duty to protect the confidentiality of company information. Any information that belongs to the company is to be used only by the company for the company. Such information is considered the property of the company and it must be used to the advantage of the company. The objective of this paper is to discuss the duty of nominee directors concerning the confidentiality of company information. Nominee directors who actually represent their nominators on a board of directors will find their duty challenging as they might be expected by their nominators to provide them with certain company information. The study is based on doctrinal and statutory analysis of selected jurisdiction as well as cases based on various jurisdiction. It is argued that nominee directors are in a vulnerable position as directors who are representing their nominators at the same time. Though it has been clearly legislated that their loyalty is to the company they should to a certain extent be allowed to disclose information that would not jeopardise their companies. UPM Press 2017-03 Article PeerReviewed application/pdf en http://irep.iium.edu.my/65068/9/65068%20Confidentiality%20of%20Company%20Information.pdf application/pdf en http://irep.iium.edu.my/65068/8/65068%20Confidentiality%20of%20Company%20Information%20SCOPUS.pdf Hassan, Halyani and Abd Ghadas, Zuhairah Ariff (2017) Confidentiality of company's information: Challenges for nominee director. Pertanika Journal of Social Sciences& Humanities, 25 (S) (Special edition). pp. 143-154. ISSN 0128-7702 E-ISSN 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2025%20(S)%20Mar.%202017/14%20JSSH(S)-0404-2016-1stProof.pdf
spellingShingle K Law (General)
KPG Malaysia
Hassan, Halyani
Abd Ghadas, Zuhairah Ariff
Confidentiality of company's information: Challenges for nominee director
title Confidentiality of company's information: Challenges for nominee director
title_full Confidentiality of company's information: Challenges for nominee director
title_fullStr Confidentiality of company's information: Challenges for nominee director
title_full_unstemmed Confidentiality of company's information: Challenges for nominee director
title_short Confidentiality of company's information: Challenges for nominee director
title_sort confidentiality of company's information: challenges for nominee director
topic K Law (General)
KPG Malaysia
url http://irep.iium.edu.my/65068/
http://irep.iium.edu.my/65068/
http://irep.iium.edu.my/65068/9/65068%20Confidentiality%20of%20Company%20Information.pdf
http://irep.iium.edu.my/65068/8/65068%20Confidentiality%20of%20Company%20Information%20SCOPUS.pdf