Many companies have policies on who can communicate with external parties. These policies are important to ensure a company deals consistently with market professionals. Market professionals include securities analysts, fund managers, brokers or dealers, investment advisers, institutional investment managers, hedge funds, investment companies.
The policies are also important to designate who to speak with reporters, shareholders or other holders of the company securities, customers, vendors, competitors, and others not bound by a confidentiality duty to the company to make sure that company communications comply with applicable laws.
For instance, under Regulation FD under the Securities Exchange Act of 1934, premature or unauthorized disclosure of company information may adversely affect the company’s ability to meet disclosure obligations under securities laws, or cause competitive harm, resulting in company liability.
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