Page 139 - SBL Integrated Workbook STUDENT 2018
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Reporting to stakeholders
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).
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