Directors Should Communicate with Shareholders

Editor’s Note: John Wilcox is chairman of Sodali and former Head of Corporate Governance at TIAA-CREF. This post is based on a Sodali publication by Mr. Wilcox.

To demonstrate their effectivenes…

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This is a very difficult topic. If directors communicate with shareholders, which director or directors? Are the communications in violation of securities laws? Does the director know how to handle forward looking communications? Does the director know how to handle communications in general? What if the director says something wrong, or in a manner that was received in a manner that wasn’t intended? What topics should the director address or talk about? Why not just have the CEO discuss the topics? And the list goes on and on. It might be that director communications with shareholders become commonplace or expected, but there are many questions that need to be answered first.

Dave Tate, Esq.