Leaping from just disclosure to real communication

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?

New economy impacting traditional practices in corporate governance

Technology giants today are challenging some traditional practices in corporate governance, with the digitalisation of the economy creating a less transparent environment that is impacting stock exchanges, making them less competitive than before.

In an e-mail interview with The Business Times, Hector Lehuede, senior policy analyst, Corporate Affairs Division, OECD, said the disruption from technology has brought new challenges to an already evolving landscape on corporate governance, and it’s not just at the company level.

Purpose, values, culture - how do they drive governance?

With political turmoil, scandals, distrust of big business and the financial systems, there is an emerging belief that business should be about more than just turning a profit.

One of the findings from a recent Black Sun global research study together with CIMA and AICPA, Purpose Beyond Profit, found that across all regions, the majority (89%) of executives believe that their organisations must shift their attention beyond profit to wider value creation.

Interview with David Gerald - The need for an in-house internal audit function

The Singapore Code of Corporate Governance Principle 13 states that "The company should establish an effective internal audit function that is adequately resourced and independent of the activities it audits." There is a strong reason for establishing an in-house internal audit function. In a recent interview with Mr. David Gerald, president of the Securities Investors Association (Singapore) or SIAS, we learn that he has been strongly promoting this idea.