SEC files complaint in IFEC case

The Securities and Exchange Commission (SEC) has filed a criminal complaint against the chairman of Inter Far East Energy Corporation Plc (IFEC) with the Royal Thai Police’s Economic Crime Suppression Division for committing dishonest acts to gain an unfair advantage for himself or other persons.

Though the number of IFEC directors was insufficient to form a quorum as required by law, chairman of the board Wichai Thavornwattanayong called for two shareholder meetings on Feb 14 and May 2 to seek shareholder resolutions for the election of new directors, aiming to fill vacant positions and meet the quorum requirement.

“[Mr Wichai] arranged for the election by means of cumulative voting, despite knowing that such a method is not allowed according to the company’s articles of association,” said the SEC statement.

The Ministry of Commerce’s Department of Business Development also issued an order rejecting the registration of a change in IFEC directors because it breached the company’s articles of association and violated Section 70 of the Public Company Limited Act 1992.

By committing such misconduct, Mr Wichai benefited from the results of the election.

“Such wrongdoing is a dishonest performance of duty, causing the company to suffer damage or benefiting for Mr Wichai or other persons, in violation of Section 89/7 and Paragraph 2 of Section 281/2 of the SEC Act 1992,” said the SEC statement.

As a result of the criminal complaint, Mr Wichai is not allowed to hold the positions of director or executive at any securities or listed company.

The SEC is also examining public and stakeholders’ complaints regarding unlawful acts committed by the former and current IFEC directors and executives.

SET-listed renewable power producer IFEC fell into financial hardship after rifts among major shareholders caused the company to default on a series of bills of exchange.