IOD tightens rules on corporate governance

Bandid Nijathaworn, president of the IOD, said the rules to be enforced in 2014 would consist of upgraded versions of the old rules and some additional ones, in accordance with changing circumstances in the business world.
“The rules will be announced early next year, so that listed companies can improve their compliance before the rules take effect in 2014,” he said.
Stock Exchange of Thailand president Charamporn Jotikasthira said the rules would be upgraded for greater clarity and improvement in corporate governance (CG) as a whole.
“This will prepare Thai listed companies for greater competition and greater recognition in CG, once Thailand becomes part of the AEC [Asean Economic Community] in 2015. Importantly, this will elevate the Thai stock market’s image in the eyes of local and foreign investors in the long term,” he said.
In a survey this year, 513 Thai listed companies’ average CG score was 77 per cent, which is near last year’s level and is considered fair.
Of the total, 59 companies showed a score of above 90 per cent, against 47 companies in the previous year. Among them, 35 companies are those with market capitalisation above Bt10 billion; 16 companies with market cap between Bt3 billion and Bt9.99 billion; five with market cap between Bt1 billion and Bt2.99 billion; and three with market cap below Bt1 billion.
The highest CG scores were in the shareholders’ rights and transparency categories, while the scores in the stakeholders and directors’ responsibility categories were the lowest.