AIMC chairwoman dresses down CP All executives
Voravan Tarapoom, chairwoman of the Association of Investment Management Companies (AIMC), has urged the board of SET-listed CP All Plc to take appropriate action against top executives who have been fined for insider trading.
Mrs Voravan, also chief executive of BBL Asset Management (BBLAM), said her company and executives of other asset management companies had been intensely discussing the incident and the response of CP All executives.
“An executive of CP All just contacted me to request a meeting with AIMC perhaps early next week,” she said. “We’re waiting for proper action by CP All’s senior management regarding my post on Facebook today [Friday]. If they don’t act properly towards these people, we may consider an action on behalf of the association.”
Mrs Voravan posted a statement on Facebook yesterday: “Regarding the case of a listed company’s senior executives using inside information for their personal trades, on behalf of institutional investors we’ve agreed that companies’ board of directors should consider what should be done and not be careless.
“Without change it is difficult for institutional investors to trust a company’s corporate governance (CG), and we need to take action as appropriate.”
Her post referred to the four CP All executives who were fined by the Securities and Exchange Commission for using inside information to purchase shares of cashand-carry giant Siam Makro Plc ahead of the company’s announcement it would buy out Makro at above-market value.
Fined were executive chairman Korsak Chairasmisak, vice-chairman Piyawat Titasattavorakul, vice-chairman Pittaya Jearavisitkul and Athueck Asvanund, a vice-chairman and group counsel of True Corporation.
Mrs Voravan also posted that two of BBLAM’s CG-focused mutual funds did not invest in CP All, as it failed to meet its criteria.
Win Phromphaet, vice-president of the CFA Society of Thailand, said the insider trading would affect market sentiment and every company’s shares, as it was a serious and unacceptable action.
It is the fifth company recently fined for insider trading. CPALL shares closed at 43 baht on the SET yesterday, down by 9.47% from early in the week.