A lawyer serving as an outside director has the same duty of care as any other outside director, and the same exposure to liability. The lawyer's skill and knowledge must be brought into the boardroom in the interest of the corporation.
Beware of forwarding email strings and sharing attorney-client privileged communications. As the client, you hold the privilege, but if you voluntarily disclose our communications (e.g., “Our General Counsel told us…”), the privilege is waived.
No matter how the attorney-client privilege is articulated, there are four basic elements necessary to establish its existence: (1) a communication; (2) made between privileged persons; (3) in confidence; (4) for the purpose of seeking, obtaining or providing legal assistance to the client.
Start by including the words "privileged," "confidential," or "attorney-client communication" in your email subject line. Make sure the body of your email is clear, specific, and only discusses legal issues. Always ask your attorney before sharing information with others, including the contents of your emails.
There are two major exceptions to the lawyer-client privilege under the California Evidence Code, as discussed below. 2.1. Crime or fraud. 2.2. Preventing death or substantial physical harm.
Board minutes often contain information that is subject to the attorney-client privilege and that directors may prefer to keep confidential. However, most jurisdictions allow stockholders to inspect corporate books and records, including board minutes.
Rule 3: Label the top of the communication or the subject line of an email: "Privileged and Confidential: Attorney-Client Privileged Communication." This notice should be prominent and easily viewable as soon as someone receives the communication.
Unethical attorneys may breach attorney-client privilege for their own gain. If they have the chance to profit from your information or your case presents a conflict of interest for them, unbeknownst to you, they may intentionally divulge privileged information to benefit or protect themselves.
Instead, board minutes, or portions of board minutes, can be privileged under US law when they capture legal advice rendered either by in-house lawyers or external lawyers or discussions of ongoing litigation. Board participants should be aware of the potential for a waiver of the privilege.