IFEC receives ministry probe

SECURITIES: The Commerce Ministry on Wednesday sent its investigation team from the Business Development Department to check the financial condition of Inter Far East Corporation Plc (IFEC) and the business conduct of the its board of directors following an investigative petition filed with the ministry by IFEC retail shareholders.

The investigation is taking place at the IFEC head office on the 29th floor of Nine Tower in Bangkok. The probe is expected to last several days.

The Securities and Exchange Commission (SEC) recently filed a criminal complaint against IFEC chairman Wichai Thavornwattanayong 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, Mr Wichai 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 remaining directors of IFEC should accelerate setting up an extraordinary meeting of shareholders in accordance with the law. This would lead to a transparent election of new directors and meet the quorum requirement,” said Jakkrit Prachum, a lawyer representing IFEC retail shareholders.

“[IFEC’s] business could be driven forward [given newly elected directors], which could lead to a withdrawal of the suspension pending sign, which has been in place for over nine months,” said Mr Jakkrit.