Boardroom INSIDER for… JULY

***Ralph Ward will host the webinar “Boardroom Best Practices for the Real World” August 26 – Register for this 90-minute interactive program through Lorman today!***

 

THE HIDDEN DANGERS IN BOARD/INVESTOR DIALOGUE

In just the last year, the topic of improving dialogue between shareholders and corporate boards has caught on like wildfire, with new initiatives by The Conference Board and PwC, plus specialized IR startups such as the new iiWisdom service.

Yet the drive to build stronger two-way communication between boards and investors brings hidden dangers, write Ralph Ward, publisher of the governance monthly Boardroom INSIDER (www.boardroominsider.com).  In the July issue’s lead article, Ward queries whether legal and operational landmines could soon derail this dialogue.

“The voice of the shareholder is really a chorus of differing, often competing demands,” notes Ward, who also asks who handles the board end of the discussion — the chairman, a lead director, the full board?  Further, there are worrisome legal traps for the board that talks with investors.  In the US, Ward writes, Regulation FD sets strict rules for broad corporate disclosure that would be easily tripped if “the board is telling one investor something it’s not telling all investors.”

Also in the July Boardroom INSIDER:

pinkBoard succession planning — a four-step plan.
pinkTendering tips for the world’s parastatal boards.
pinkDid you really resign from that board (don’t be so sure)?
pinkQ&A: Coping with the clueless board chair.