"Directors' duty of confidentiality does not cease to apply at the end of their term of office"

Tomás Almeida Ribeiro, managing associate in the Corporate M&A practice, and Manuel Sequeira, senior associate in the same practice, have written an opinion article for Advocatus entitled "Directors' duty of confidentiality does not cease to apply at the end of their term of office".

"It is becoming increasingly important for companies to regulate the relationship with their directors by means of management contracts, which set out the main rights and obligations of the director during the performance of his or her duties and after the end of his or her term of office. Typically, companies seek to ensure that the director is bound by non-compete, non-solicitation and confidentiality obligations for a certain period after leaving office, in return for remuneration. In Portugal, however, the execution of these management agreements is unfortunately rare, and therefore most of the company's relations with the former director are regulated only by the applicable legal provisions".

Read the full article here (in Portuguese).