Flashback – 2010 … the year that flew by

2010 was an eventful year in more ways than one. Corporate performance is now seen in all hues. From a spectacular growth in the stock market and amazingly good / bad primary market listings to corporate frauds and press manipulation we have seen it all in the past twelve months.

Amidst all this chaos corporates are out there either raising money or attempting to raise valuations. How do they (corporates) gauge (a) investor interest and (b) investor confidence in their company? How many corporates have an effective investor relations strategy? Does anyone have and follow a code of conduct for corporate governance? and numerous other such questions.

To me this clutter and chaos should force corporates to pursue an active investor relations strategy and corporate governance code of conduct. However what should any management which does not intend to raise money or is not enthused by higher valuations do? Should they have an active investor relations strategy or a passive one will suffice? I believe that management’s of listed entities have the fiduciary responsibility towards its shareholders, especially minority shareholders. It is these shareholders’ who had faith and have invested in the company. This makes it their right to know and stay informed about the company on an ongoing basis. The other side of the coin is that it is the managements’ duty to continually let its investors know about the events at the company.