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Private companies can't treat shareholders like mushrooms.

| Monday December 8, 2014

Private companies often fail to set aside sufficient time to communicate regularly with their shareholders, viewing them as a nuisance rather than the reason that they exist. But shareholders are not mushrooms – they cannot be fed rubbish or kept in the dark.

There are,of course, honourable exceptions. Every business can benefit from a review of how they communicate with their investors from time to time, particularly since shareholders play an important role in the company’s long term prospects with their ability to limit future financing opportunities.

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