IN this tech savvy day and age, one of the most useful communication devices a company can possess - to help it interact with and disseminate information to its investors - is an Internet website.

What, then, surprises is that about 10 per cent of companies listed here still don't have a website. The Corporate Governance & Financial Reporting Centre (CGFRC) at the NUS Business School found that 59 companies - out of the more than 700 companies listed on the Singapore Exchange - don't have a working website.

'A website helps a company to communicate information to its stakeholders, including its investors, on a timely basis,' says Associate Professor Mak Yuen Teen of the CGFRC. 'A company without a website suggests a reliance purely on regulatory channels to disseminate information, for example, through printed circulars and annual reports, or through SGXnet. It gives the impression that the company is not interested in going beyond mandatory requirements in communicating with investors and other stakeholders.'

'It may indicate a lack of strong commitment to accountability. The costs of developing and maintaining a website are not high and should not be an excuse for not having one,' he adds.

Ang Hao Yao, chairman of the membership committee at the Securities Investors Association of Singapore (Sias) and an active investor himself, agrees: 'In the IT age where computer literacy is very high, websites are an essential communication tool for companies. It is common for associations, SMEs and even home industries to have one. If a company does not have a website which investors can access, I would feel that the company is not committed to communication with its investors. Investors may also get the feeling that the company intends to be less than transparent.'

Patrick Lee, head of Singapore and Malaysia investment banking at UBS and a judge for the Best Investor Relations Award, believes that a website is an essential communication tool between the company and its stakeholders.

'Good investor relations is about providing an active information channel between internal and external stakeholders. To the investment community, it gives an honest and accurate picture of the performance and prospects of the company. To the management team, it is an important channel for market feedback that can guide strategy,' Mr Lee said.

Prof Mak believes that more companies here should take their cues from international and local best practices - and use their websites to disclose additional information relating to corporate governance, such as board and committee charters, codes of conduct, delegation of authority policy and their whistle-blowing policy.

'I would like to see less information about corporate governance in the annual report - which can perhaps focus on some key areas and changes in corporate governance - and more in the website. This will save more trees!' Prof Mak quipped.

He added that companies should also take the effort to make sure that their websites are updated regularly. 'What is worse than not having a website is having one that contains highly outdated information. Companies, therefore, must ensure that there is the necessary discipline to ensure that someone within the company takes ownership for ensuring the website is up to date,' he said.

Of course, having a website isn't the be-all and end-all of good IR, either. Proponents of good IR believe there's lots more for companies to do. Mr Lee says: 'A successful investor relations programme would involve a suite of communications channels that will allow the company to target various key audiences and address their differing needs. A website is the most cost effective and easiest way to give an update on the company's latest corporate initiatives in a global investment setting. It complements other investor relations channels such as investor and analyst meetings, media briefings, annual reports and webcasts.'

Mr Ang who's also a judge for the Best IR Award, says: 'It is also an advantage if companies arrange for talks and meetings outside of the AGM to discuss their corporate developments and financial results as well as to answer questions from investors. Companies could also participate in investment fairs, investment seminars, pre-AGM meetings and e-mail Q-and-A sessions to enhance its communication to investors. This process of better understanding and addressing shareholder concerns through IR programmes promotes better transparency and governance.'

Prof Mak concludes: 'Companies should also prominently disclose the person whom investors can contact if they have queries, in both the annual report and the website, and means of contact. And they should make sure that there is actually someone knowledgeable about the company that is following up on these queries. Of course, there should be a policy on investor communications to ensure the principle of fair disclosure of information to all investors is observed.'

>> Singapore listed companies without a website

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