Leaping from just disclosure to real communication
Investors today want greater transparency and understanding of how decisions are made
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Singapore
MANY a time, companies believe that their disclosure is sufficient communication. Mere compliance with the Listing Rules and Companies Act to fulfil their disclosure duties does not always mean that they have communicated their disclosures to the expectation of their audience.
The dictionary meaning of "disclosure" is to make a fact known, whereas "communication" refers to the successful conveying or sharing of ideas. Often, company's disclosures are in legal jargon, in complex documents and, even at times, in footnotes. How then can shareholders be expected to understand the business of the company and its financial position, and make informed decisions effectively?
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