IFEC directors on the offensive
Move to block ousted execs from using power
Directors of embattled Inter Far East Energy Plc (IFEC) have sent letters to the company’s 50 non-listed subsidiaries, intending to set up an urgent shareholders’ meeting in order to prevent former IFEC directors and executives from exercising power.
The move stems from the fact that the Securities and Exchange Commission (SEC) has no authority to bar or dismiss people who violate the SEC Act from their positions in non-listed companies and subsidiaries.
The IFEC saga continues after two former IFEC chief executives — Wichai Thavornwathanayong and Suphanan Rittiphairoj — voted to remove Sumet Suttapukti, former chief executive of IFEC subsidiary Inter Far East Wind International Co Ltd (IWind).
Mr Sumet alleged that they removed him unlawfully because he disagreed with a fund transfer of 200 million baht from IWind to IFEC.
Mr Wichai was accused by the SEC of failing to disclose information about the firm’s default on bills of exchange. He benefited from refraining to disclose related information because his IFEC shares, worth 57.46 million baht, were used as collateral for the company’s margin trading and were not subject to forced sale.
Mr Suphanan was dismissed from his position by the SEC on grounds of insider trading and refusal to acknowledge a civil sanction.
Despite being removed from their positions in IFEC, both Mr Wichai and Mr Suphanan remain as directors in most IFEC subsidiaries, which consist of about 50 companies operating in alternative energy and waste management.
IFEC director Boonlert Jangnopparat said Mr Wichai and his team still remain as directors in most IFEC subsidiaries, despite being lawfully removed from their positions as executives and directors of IFEC.
“We would need to have an order from IFEC’s new board of directors if we were to change directors and authorised signatories of IFEC’s subsidiaries,” Pol Col Boonlert said. “IFEC’s new board of directors is being appointed through a shareholders’ meeting, which is expected to occur in the third week of November.”
After an assessment by the SEC of 74 applicants, 14 are qualified to become new IFEC directors. Seven of nine positions in IFEC’s board of directors remain vacant.
Once retail shareholders approve seven new directors to fill vacancies, the company will forward the names to related agencies for further approval, which is expected to take 14 days to complete, Pol Col Boonlert said.
Once the process is done, there will be a selection of the company’s new chairman and chief executive, followed by a meeting of the new board of directors to discuss the business rehabilitation plan, he said.
The SEC has recommended that IFEC shareholders exercise their rights under Section 100 of the Public Limited Company Act of 1992.
Section 100 states that the combined shares held by retail shareholders must reach 10% of total shares to set up a shareholders’ meeting. Once this requirement has been fulfilled, the board of directors must arrange a meeting within 45 days.
IFEC director Chatnarong Chatrabhuti said an examination of IFEC’s investments in Cambodia, Vietnam and Australia found that only 10% of total investment went to alternative energy projects.