Directors' Confidentiality Obligations

Under the Companies Law, directors are prohibited from disclosing confidential information and trade secrets to which they have access in their capacity as a director. Further, the law states that the scope and duration of a director's confidentiality obligations must be agreed by the director and their company in the applicable mandate agreement.

Shareholder access to confidential information

In practice, the transfer of information to the controlling shareholder by directors appointed by the controlling shareholder is a sensitive issue.

The Companies Law expressly sets out the information to which shareholders have access and provides for the principle of equal and fair treatment of all shareholders. Thus, only limited information is available to shareholders (eg, information pertaining to the shareholder structure, financial statements, directors' reports and information relating to the agenda of the shareholders' meeting). However, each company may expand