Global Crisis Management Series: This post is part 5 in a
series concerning topics further elaborated on in Cleary
Gottlieb's Global Crisis Management Handbook—a desk
reference for spotting issues and avoiding common mistakes when
faced with a crisis. The current version is available
here.
Effectively dealing with a crisis often requires disclosure to
government authorities, shareholders, and other stakeholders, even
when many facts remain unknown. Companies must toe a delicate line
when assessing when, to whom, and how much to disclose, especially
in the absence of complete information.
Mandatory Disclosure
One of the first things a company should consider in a crisis is
whether disclosure to authorities is mandatory. Mandatory
disclosure obligations vary widely across legal regimes and may be
imposed by Congress, government regulators, self-regulatory bodies,
or even stock exchanges. For example, regulated entities may face
immediate disclosure obligations to
