Introduction

The overview of disclosure presented in this book exhibits a complex system comprising a variety of regulatory mechanisms. Disclosure is an essential company law device that is increasingly relied upon as a method of control of corporate activity. The disclosure regime has evolved with changing business priorities and behaviours, but the essential shareholder-centred profit-maximisation objective that underpins company law generally has also shaped the character of that regime. Consequently, the disclosure system emphasises the need for information on the company's financial position with a view to assisting shareholders in making economic decisions.

There are many levels upon which the disclosure system operates, with an extensive body of statutory and professional requirements as well as voluntary schemes to encourage best or good practice. Companies provide information centrally and publicly on the Companies Register as well as on the internet and they present more specific information to different groups relevant to their needs and discussions. Information is presented internally within the company and externally to the public, and is generated both by the company itself and externally by organisations such as the media or financial analysts. Indeed, a broad range of participants are involved in the disclosure process. Those responsible for providing information may include the company secretary, the board of directors, accountants, lawyers, employees and others. Recipients range from internal managers, shareholders and employees, to the wider public such as consumers and campaign organisations.