Legal Question in Real Estate Law in Nevada

Although it is a basic premise of business law that one cannot disclose the inner workings of a board of directors in any manner that might harm the entity or provide some advantage to an outside company, it happens all the time. You would be well-served to hire legal counsel to draft a non-disclosure agreement between and among all directors.

If a director were to use inside information to enrich himself, that is an entirely different category of wrong upon his company, and is certainly actionable, too. That, too, can be expressly addressed in such a privacy or non-disclosure agreement. It might seem redundant and unnecessary, since their actions would already be tortious and/or illegal, but there is a certain psychology associated with making promises to obey the law and blatantly committing oneself to good conduct. That is the real value of such an agreement, beyond just providing a legal basis for action in the event a director engages in inappropriate business conduct.

Consult your corporate counsel or retain a local attorney to help construct a legally enforceable agreement to secrecy that all directors will be compelled to sign and obey.