Corporate Secretary - October 2008

• Governance ratings have become a ubiquitous part of modern business
• A new Stanford study casts doubt on relationship between ratings and performance
• Rating firms dispute the study’s methods and its conclusions
• They say their scores are bench marking tools, not predictors of performance
• Academics call for more transparency and cooperation from rating firms

By Ian Sax

• SEC introduces system for online Form D filing
• Analysts and investors able to search data in real time
• Venture capital investors don’t want the exposure
• Companies concerned about restriction of investment flows
• One-stop federal and state filing will permit better oversight 
By Adam Piore

• Paul Atkins warns SEC about adopting proxy access in final speech
• Any rule change will attract legal challenges
• SEC is overstepping its remit in trying to pass new law
• States unlikely to uphold proposed rule 14a-8
• Legal community suggest shareholders already too empowered 
By Brendan Sheehan

• Corporates feel analysts are responsible for ‘short-termism’
• CFA Institute aims to improve standards among entire community
• Governance needs to become a greater focus for analysts
• Advocacy focuses on SEC’s rapid GAAP-IFRS transition
• Vision 2012 sets milestones for CFA Institute’s improvement 
By Janine Armin

• Groundbreaking case cracked down on companies’ e-data management
• Quantity of information compounds difficulties of e-discovery
• Myriad documents must be kept and others must be destroyed
• First step toward organization is understanding what you need
• A sound records management program could save your company 
By Elizabeth Judd

• School ties help analysts and directors get and retain jobs
• Executive alma-mater backgrounds inform analysts’ assessments
• Reg FD wiped out information advantage linked to school ties
• Independent directors may be chosen for social connections
• Studies continue to probe the benefits of social networking
By Randy Hecht

• New web disclosure guidance could eliminate need for press releases
• Foggy guidelines push start date into the far future
• Principles-based descriptions leave companies wanting answers
• Constructing websites could have unexpected costs
• Legal uncertainty makes liability a serious concern
By Erik Sherman

• FASB proposes expansion of contingency disclosure rules
• Unpredictability of litigation makes estimating costs almost impossible
• Detailed disclosures may embolden plaintiffs in some cases
• Impact on share price will be impossible to predict
• Minor modifications could limit pressure to speculate on claims
By Mary Beth Kissane

• SEC plans a new database of filings to succeed EDGAR
• IDEA will use XBRL, a financial reporting system based on interactive data
• DEA comes on the back of a worldwide XBRL push
• Some 500 US companies may start using XBRL for financial filings in 2009
• Greater transparency and accuracy should benefit investors and companies
By Carolyn Iglesias