The Role of Disclosure in Corporate Governance
The Role of Disclosure in Corporate Governance The Role of Disclosure in Corporate Governance
From Transparency to Disclosure• “Sunlight is said to be the best ofdisinfectants; electric light is the mostefficient policeman”.• It is an old quote from Louis Brandeis,Supreme court of justice in the contextof Great depression 1933.• It demonstrates how financialtransparency was the remedy forfraud and market manipulations in the1920s as it is now.
International Standards - OECD• The corporate governance framework should ensuretimely and accurate disclosure on all material matters,including financial situation, performance, ownership andgovernance of the company.– At minimum annually, or even semi-annually or quarterly; ormore frequently for material developments.– Material info is that information whose omission or misstatementcould influence economic decisions taken by users ofinformation.– Should be simultaneous to all shareholders.– Requirements should not create unreasonable administrative orcost burdens.
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International Standards - OECD• <strong>The</strong> corporate governance framework should ensuretimely and accurate disclosure on all material matters,<strong>in</strong>clud<strong>in</strong>g f<strong>in</strong>ancial situation, performance, ownership andgovernance <strong>of</strong> the company.– At m<strong>in</strong>imum annually, or even semi-annually or quarterly; ormore frequently for material developments.– Material <strong>in</strong>fo is that <strong>in</strong>formation whose omission or misstatementcould <strong>in</strong>fluence economic decisions taken by users <strong>of</strong><strong>in</strong>formation.– Should be simultaneous to all shareholders.– Requirements should not create unreasonable adm<strong>in</strong>istrative orcost burdens.
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