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Liability risks in shareholders’ engagement via electronic communication and social media

Aiman Nariman, Mohd Sulaiman and Mohsin, Hingun (2020) Liability risks in shareholders’ engagement via electronic communication and social media. International Journal of Law and Management. pp. 1-17. ISSN 1754-243X

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Abstract

This paper aims to examine the potential liability of companies and their board members arising from the use of digital technology and social media as communication and engagement tools with investors and shareholders. Design/methodology/approach – The research relies on a qualitative study using legal analysis of corporate and capital market laws as well as the outcome of legal proceedings and regulatory actions to ascertain conduct that could expose companies and boards to liability risks. Findings – Social media characteristics expose unwary directors and companies to potential liability for oppressive conduct, selective disclosure or misleading statements. Research limitations/implications – This paper informs boards and companies of the types of conduct that could expose companies and boards to liability when social media is relied on to communicate with shareholders and investors. Originality/value – The paper contributes to the literature on social media, capital market and corporate communication by presenting the legal perspective concerning reliance on social media as shareholders’ engagement and corporate communication tool.

Item Type: Article (Journal)
Additional Information: 1872/81946
Uncontrolled Keywords: Shareholders’ engagement, Corporate communication, Social media, Directors’ accountability
Subjects: K Law > K600 Private Law
K Law > KPG Malaysia
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User: Prof Aiman Nariman Mohd-Sulaiman
Date Deposited: 03 Aug 2020 11:53
Last Modified: 03 Aug 2020 11:53
URI: http://irep.iium.edu.my/id/eprint/81946

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