Director watchdog suspends 7 companies
The Thai Institute of Directors (IoD) will stop evaluating for two years the corporate governance (CG) of seven listed firms whose directors have been fined or charged by the Securities and Exchange Commission (SEC) with unfair trading practices, false information dissemination and negligence to transactions that caused damages.
The seven were suspended from the IoD’s annual CG Report of Thai Listed Companies (CGR) because their boards of directors were fined or had complaints filed against them by the SEC within one year of the CGR’s last evaluation in January 2015, president and chief executive Bandid Nijathaworn said without revealing names.
“It is the first time we are taking serious action to send a signal to society,” Mr Bandid said. “We want the companies to learn from experience that these mistakes have come at the expense of their CGR evaluation for two years.”
Last December, four executives at CP All Plc and True Corporation Plc were fined a combined 33.3 million baht for using inside information to purchase shares of Siam Makro Plc ahead of the 7-Eleven operator’s announcement that it would buy out the cash-and-carry giant at abovemarket value.
Those fined were CP All executive chairman Korsak Chairasmisak, vice-chairman Piyawat Titasattavorakul and vice-chairman Pittaya Jearavisitkul, along with Athueck Asvanund, a True vice-chairman and group counsel.
In March, the SEC fined several executives and directors of listed companies for unfair trading practices and false information dissemination. They included Chai Sophonpanich, who was director and chief executive of Bangkok Insurance Plc at the time, and Witoon Suriyawanakul, chairman of the management committee and director of Siam Global House (Global).
IoD chairman Krirk-Krai Jirapaet said the next step is to bar listed company directors and executives involved in breaching the Securities and Exchange Act in the past three years from renewing or applying for IoD membership.
That action will go to IoD members for approval at a general meeting to be held at the end of this month.