The company provides avenues for communication between the Board and all shareholders, and discloses in its annual report the steps taken to solicit and understand the views of shareholders.
A. Explanation

This Provision covers the communication which should take place between the Board and all shareholders so that the Board can better understand the views of shareholders.
The previous Principle and its Provisions focus on the communication with shareholders and rights of shareholders at general meetings.

It is important for the Board to establish and maintain regular communication with shareholders beyond the formal general meetings. It is better for the company and the Board to know these views, and to understand and address their concerns.

For many companies, the ongoing engagements with shareholders tend to be conducted by management (without Board participation) through roadshows and other forms of communications.

Although the Provision does not state how the Board should go about communicating with shareholders, the following methods may be useful:

  • Stay after the formal general meeting is over to meet up informally with shareholders during the reception.
  • Attend investor roadshows, investor meetings, and shareholder days.
  • Attend product launches and major marketing events where investors may be present.
  • Organise shareholder trips of select Board members, management and major shareholders.
  • Participate in online sessions with shareholders using interactive technology.

Other Provisions state that shareholders should be provided with an appropriate contact for answering questions and providing responses (Provision 12.3), and a corporate website with which to communicate and engage with stakeholders (Provision 13.3).

The Board should also disclose the mechanics of the Board’s engagement with its shareholders. Such a disclosure serves two purposes:

  • The need to disclose could spur some Boards to actually engage with shareholders.
  • Shareholders will know what has been done and judge the fairness or, indeed, transparency and adequacy of such communication.


B. Practice Guidance


C. Related Rules and Regulations
  • Nil.


D. CG Guides
  • Board Guide 4.9: Investor Relations [Board Duties].
  • Board Guide 7.2: Shareholders. [Stakeholder Engagement].


E. Related Articles




eGuide to CG Code
Definition of Corporate Governance
History and Structure of the Code
Role of the Board
Role of the Chair
Focus on Long Term and Sustainability
Revised Code Structure and Approach
Mandatory Principles
Provisions and Variations
Thoughtful and Meaningful Application
Board Matters
Principle 1
Provision 1.1
Provision 1.2
Provision 1.3
Provision 1.4
Provision 1.5
Provision 1.6
Provision 1.7
Principle 2
Provision 2.1
Provision 2.2
Provision 2.3
Provision 2.4
Provision 2.5
Principle 3
Provision 3.1
Provision 3.2
Provision 3.3
Principle 4
Provision 4.1
Provision 4.2
Provision 4.3
Provision 4.4
Provision 4.5
Principle 5
Provision 5.1
Provision 5.2
Provision 5.3
Remuneration Matters
Principle 6
Provision 6.1
Provision 6.2
Provision 6.3
Provision 6.4
Principle 7
Provision 7.1
Provision 7.2
Provision 7.3
Principle 8
Provision 8.1
Provision 8.2
Provision 8.3
Accountability and Audit
Principle 9
Provision 9.1
Provision 9.2
Principle 10
Provision 10.1
Provision 10.2
Provision 10.3
Provision 10.4
Provision 10.5
Shareholder Rights and Responsibilities
Principle 11
Provision 11.1
Provision 11.2
Provision 11.3
Provision 11.4
Provision 11.5
Provision 11.6
Principle 12
Provision 12.1
Provision 12.2
Provision 12.3
Managing Stakeholder Relationships
Principle 13
Provision 13.1
Provision 13.2
Provision 13.3
Practice Guidance
Board Roles and Director Duties
Board Composition and Guidance
Chairman and CEO
Board Membership
Board Performance
Procedures for Developing Remuneration Policies
Level and Mix of Remuneration
Disclosure on Remuneration
Risk Management and Internal Controls
Audit Committee
Shareholder Rights and Engagement
Engagement with Shareholders
Managing Stakeholder Relationships
eGuide Glossary

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