ABSTRACT

How do effective directors ensure they and the executives manage expectations of shareholders?

Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to shareholder relations and communication.

All directors should ensure that there is complete clarity of how shareholders are managed and communicated with. They should at board level approve the high-level principles of communication in all areas, not least with regards to potential activist shareholders.

The chapter considers how to manage expectations of shareholders, how to deal with activists, and how to become a transparent board.

The chapter’s introduction leads into outlining the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the board.