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Chapter 5

Disclosure

2.1 Disclosure – general principles

Shareholders are the legal owners of a company and therefore entitled
to sufficient information to enable them to make investment decisions.

 The AGM is seen as the most important, and perhaps only,
opportunity for the directors to communicate with the shareholders
of the company

 As the only legally-required disclosure to shareholders, the annual
report and accounts are often the only information shareholders
receive from the company.

 General principles of disclosure relate to the need to create and
maintain communication channels with shareholders and other
stakeholders. This disclosure becomes the mechanism through
which governance is given transparency

 Principles of mandatory disclosure discuss the target for disclosure
(particularly shareholders) and the mechanism for disclosure
(annual report or meetings).

2.2 Best practice corporate governance requirements

Nominations
Directors
committee

UK Code main
Annual general points of Remuneration
meetings disclosure committee

Audit committee

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