August 20, 2012 at 5:49 pm #53867
What factors shoud be involved when the quesiotion related “the company information confidential and transparent”?August 20, 2012 at 6:41 pm #102278
Would you like to re-post your question, but this time can you write it in such a way that I can understand it?
Many thanksAugust 21, 2012 at 8:09 am #102279
Oh, yeah, I am sorry.
There is some commerical reason that companies’ information shoud be ket
confidential. However, the transparency tell us that the company should disclose
information to shareholders. How to balance this condition? what if some information should be disclosed but the director said they are internal confidential information ? Thank you very much!August 21, 2012 at 11:52 am #102280
That’s better! Now, to your question! Company directors are clearly accountable to their shareholders and, in a wider context, to all other stakeholders. They satisfy this accountability by the publication of financial statements together with management reports, business reviews, institutional investor meetings, website announcements ….
All of this is moving towards greater and greater transparency. However, there are some matters where it would be inappropriate to make publication from “day1″. For example, where a board of directors makes a strategic decision to acquire the business of a competitor, or to enter a price war, or to make public their plans with reference to product development and innovation … in any of those situations premature disclosure would be inappropriate.
I suppose we can generalise the solution! If it has already happened, then full disclosure is appropriate. If it’s still in the planning stage, then disclosure is not appropriate. And so we can probably safely say “With reference to disclosure, it’s all or nothing”
Does that help?August 21, 2012 at 1:50 pm #102281
Yes, thank you very much!
However, if one case says: the director refuses to disclose some information and
the reason is that they are confidential information. How can I judge they are really
confidential or not? Does only see whether it is planning stage?August 21, 2012 at 7:10 pm #102282
Not really. Any board of directors can “refuse” to disclose ANY information beyond what is required by law or IFRS. However, in the best interests of modern corporate governance guidance, transparency is ( hopefully ) becoming the norm. Cadbury, in his committee’s report, identifies transparency and accountability, honesty and probity as fundamental to the concept of corporate governance. But these are identified “ideals” and, as yet, not legal nor professional requirements.
Hope that helps
You must be logged in to reply to this topic.