Corporate Governance

To Blog or Not to Blog

By Tamar Weinrib

In today?s age of technological advancement the use of blogs has become commonplace and is now a tool that companies can utilize for the ongoing exchange of opinions and ideas among management, employees, and shareholders.  However, an SEC release that will become effective on August 7, 2008 cautions companies that maintain such blogs that the statements they make will be subject to the antifraud provisions of the Federal Securities Laws in the same way as other company statements.  So a corporation that decides to maintain such a blog must carefully evaluate the information it posts.  The release does clarify however that a company is only responsible for its own statements on the blog and not for statements posted by third parties unless the company clearly adopts or endorses those statements.  In addition, the company is not required to respond to or correct misstatements that the company itself does not post.  For more information on SEC Release 34-58288, please click here.

Full post as published by PomTalk on August 04, 2008 (boomark / email).