gdb members PDT Solicitors advises about commercial NDAs – no longer fit for purpose?

Published: 14 Aug 2019

Non-Disclosure Agreements (NDAs) have had a bad press recently because of their questionable use by powerful individuals (such as Harvey Weinstein) to prevent the disclosure of alleged unlawful behaviour.

On a more mundane level, NDAs are regularly used at the early stages of most corporate and commercial transactions as the parties look to share confidential information.  It is important for each party to know that information shared will only be used for the agreed purpose, such as determining whether to buy a target company, and not used for anything else or shared with other parties.

The form of a commercial NDA has become fairly well established but recent changes to the data protection regime and the increased emphasis on the new rules brought in under the GDPR has meant that most of the NDAs that we are seeing do not protect the parties in the way they should.

It is highly likely that, as part of the information sharing exercise that follows the signature of an NDA, the parties will share personal data.  This could be employee information, customer details or shareholder information.  It is vital that the NDA deals with the arrangements for the processing of such data and sets out which parties will be data processors and which will be data controllers.

The disclosing parties also need to consider whether any personal data is going to be transferred out of the EEA, for example if the buyer is in the USA, and make sure that additional protections are included.

If you are considering entering into an NDA on any matter please feel free to contact Andrew Hoad of PDT Solicitors LLP on 01403 831233 or ahoad@pdt.co.uk to discuss whether the NDA needs updating to incorporate the relevant GDPR protections.

About us

Our mission is to help you grow & evolve as a business.
That also means supporting local business growth & providing a united voice in the Gatwick Diamond.
We're aiming for excellence.
Our method is proactive & determined.
Our approach? Personal & engaging.

Get in touch

Tel: 01293 440088

Membership enquiries, new and existing:
mandi@gatwickdiamondbusiness.com

Event information and booking:
events@gatwickdiamondbusiness.com

To ensure we give you the best experience on our website we use Cookies. You can change your cookie settings at any time. However, if you continue without changing your settings we will presume you are happy to receive all cookies on the gdb website. Continue