Wednesday, September 17, 2008

What Do the Lawyers Think of Electronic Shareholder Forums?

I enjoyed reading a recent article written by Brendan J. Radigan, a Partner at the law firm Edwards Angell Palmer & Dodge. It's titled "Is Social Networking With Shareholders Safe", and addresses head-on concerns that companies might have regarding setting up electronic shareholder forums. We've seen the SEC encouraging companies to implement e-forums, so now it is refreshing to see a legal opinion also promoting the benefits for companies and shareholders (while at the same time, advising companies of where they need to be cautious).

I especially like Brendan's conclusion: "If thoughtfully structured and operated, a public company's electronic shareholder forum could provide an exciting addition to its investor relations program. Promotion of social networking by, with and among shareholders could well provide a public company, particularly one operating in a fast-moving technology field, with an innovative and cutting-edge way of distinguishing itself from its peers and competitors."

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