IFEC shareholders continue push for meeting via SEC
Major shareholders and investor representatives of embattled Inter Far East Engineering Plc (IFEC) met yesterday with Securities and Exchange Commission (SEC) officials to request that the market regulator take action and force IFEC executives to arrange a shareholders’ meeting immediately.
Thavich Taychanavakul, managing director of Thai Industrial Estate Co Ltd, which holds a majority stake in IFEC of more than 200 million shares, or 10.2%, and a group of retail investors visited the SEC headquarters to seek the regulator’s assistance so that the company can resume normal business operations.
Mr Thavich said that the company’s board, consisting of chief executive Suphanan Rittiphairoj and two other directors, Boonlert Jangnopparat and Chatnarong Chatrabhuti, have refused to set up a shareholders’ meeting and that these directors are representing the wishes of former IFEC chief executive Wichai Thavornwattanayong.
“As IFEC’s directors and management say they cannot set up the meeting because there is no budget, therefore some investors and I will advance the payment for the meeting, which is worth around 3-5 million baht,” he said. “The company’ board of directors can set up a shareholders’ meeting in accordance with the Securities and Exchange Act Article 83. They can organise the meeting within 45 days after receiving the letter from retail investors, which IFEC directors have already received.”
If the company’s directors still do not set up the shareholders’ meeting, retail investors will use the Public Act Article 100, which allows investors to set up the meeting themselves, but investors’ stakes in the company need to be at least 33% of total shares, Mr Thavich said.
“I have confidence that we can gather those shares from retail investors and we will contact other major shareholders to meet the 33% portion, as required by the law. We will then set up a shareholders’ meeting,” he said.
“The process could take around 70-90 days. Investors can protect their rights and cooperate with us.”
Mr Thavich said IFEC generally has nine directors in total, but there are only three directors in position, therefore retail investors will propose six new directors to fill in the vacancies.
“The SEC has acknowledged the troubles of IFEC retail shareholders derive from how [the company’s] directors have not held a shareholders’ meeting and [the SEC] has been addressing problem,” the securities watchdog said in a statement.
The SEC said it has been devising several plans to help resolve the issue, and a recent issued guideline has taken effect for shareholders to exercise their right to convene a shareholders’ meeting.