New non-executives face a stiff challenge in fulfilling their governance responsibility to communicate with investors.
The UK corporate governance code requires the board of directors to have a dialogue with investors.
A dialogue is a two-way engagement. As investor relations professionals we see lots of pushing of information to shareholders through the regulatory news flow events but little evidence of candidly listening to views from shareholders.
When there is a genuine dialogue with investors the results can be remarkable. A straw poll of our clients indicates that those who use a perception audit as a diagnostic of things to fix, working in cooperation
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda