Boards need chit-chat with investors
Coca-Cola Amatil's chairman David Gonski believes company directors need to talk less formally and more frequently with shareholders. But he said that investor understanding won't necessarily be improved given the pressure on boards to disclose everything and respond to every “half-baked” rumour. Gonski also said that speculation by boards on companies' future financial performance is “dangerous” because it creates unrealistic shareholder expectations. Changes to federal corporate laws mean that ASIC now has the power to fine companies that fail to keep the market informed.