|Companies should actively engage their shareholders and put in place an investor relations policy to promote regular, effective and fair communication with shareholders.|
Companies list on the stock exchange to access funds from the wider public. It is in their interests to keep their shareholders informed and engaged. Conversely, shareholders increasingly want to be engaged.
This Principle sets out the need for companies to establish an appropriate investor relations policy and function to promote such engagements on a regular, effective and fair basis with its shareholders.
- Describe the need for an effective investor relations policy. (Guideline 15.1)
- Set out how the company should disclose its information to shareholders and the public. (Guideline 15.2).
- Describe the role of the Board in engaging with shareholders (Guideline 15.3).
- Recommend that the Board discloses how it has engaged with shareholders (Guideline 15.4).
- Encourage a company to have, and disclose, a dividend policy. (Guideline 15.5).
Companies should devise an effective investor relations policy to regularly convey pertinent information to shareholders. In disclosing information, companies should be as descriptive, detailed and forthcoming as possible, and avoid boilerplate disclosures.
Companies should disclose information on a timely basis through SGXNET and other information channels, including a well-maintained and updated corporate website. Where there is inadvertent disclosure made to a select group, companies should make the same disclosure publicly to all others as promptly as possible.
The Board should establish and maintain regular dialogue with shareholders, to gather views or inputs, and address shareholders' concerns.
The Board should state in the company's Annual Report the steps it has taken to solicit and understand the views of the shareholders e.g. through analyst briefings, investor roadshows or Investors' Day briefings.
Companies are encouraged to have a policy on payment of dividends and should communicate it to shareholders. Where dividends are not paid, companies should disclose their reasons.