The directors of a company are responsible for running the company in the interests of its stakeholders, particularly its shareholders.
In most large companies the major shareholders are not also directors, and it is therefore important that there should be good communications between the two groups.
The shareholders need to be informed about how the company is performing, and the directors need to know the views of their shareholders.
Transparency in stock markets and other financial markets means that information about conditions in the markets is clear and well understood. For example, transparency exists when investors understand about the financial situation of companies, and the future plans and prospects for those companies, so that they can make well-informed investment decisions.
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