The company has in place an investor relations policy which allows for an ongoing exchange of views so as to actively engage and promote regular, effective and fair communication with shareholders.
A. Explanation

This Provision describes the need for an effective investor relations policy for engaging and communicating with shareholders.

The company needs to convey relevant information to shareholders, particularly that which might impact its share price and value, through an effective investor relations policy and process.

The term “investor relations” generally refers to the formalised means by which companies communicate information, usually of a financial nature, to the investment community. Such communication is meant to help investors gain a full appreciation of the company’s business activities, strategy, and prospects and, consequently, allow the market to make an informed judgement about the fair value and appropriate ownership of a company.

Not only does an effective investor relations policy need to have such an objective, it should also be backed up by the appropriate resources and mechanisms by which it can be implemented. Usually, this requires companies to either have an investor relations department, or outsource the function to a specialist firm.

As there is an asymmetry of information between the directors and shareholders, it is important that the latter be kept informed on a timely basis about relevant matters, particularly those that could affect share price and value.

The principle of fairness applies in that all shareholders should be privy to the same information. There could be circumstances, such as at an investor roadshow, where companies may inadvertently disclose information to a select group of shareholders which could have a bearing on the price or value of the shares (MR Appendix 7.1 and CR Appendix 7A).

When this happens, a similar disclosure should be promptly made to all other shareholders. In this regard, it is common for companies to webcast their investor briefings, and/or to post the briefings and presentations on their website immediately after the event.


B. Practice Guidance


C. Related Rules and Regulations
  • MR Appendix 7.1 and CR Appendix 7A: Corporate Disclosure Policy.
D. CG Guides


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

Copyright © 1998 - 2018 Singapore Institute of Directors. All rights reserved.