New SEC chief concerned over NEWS Network-NMG dispute
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THE new chief of the Securities Exchange Commission has expressed concern over the dispute between News Network Corporation (NEWS) and Nation Multimedia Group, after the former's controversial acquisition of stakes in NMG.
Rapee Sucharitakul, newly appointed SEC secretary-general, yesterday said it was important for all stakeholders to have the basic right to enter a shareholders’ meeting, but stressed he was unable to comment about the individual case regarding NEWS and NMG as it was currently under the consideration of the SEC and also involved the Commerce Ministry in regards to the application of regulations.
“We have to find a way for stakeholders to be able to use their rights, and if the current measures and regulations are not enough to ensure their rights, then there has to be some amendment of the regulations related to the issue to ensure that board members will be found guilty when they do not allow stakeholders to exercise their rights legitimately,” he said. The case is currently under due process and the SEC and Commerce Ministry are working on it, but no time frame for its resolution can be given, he explained.
“I am not saying who is right or who is wrong here, and there will be no further comment until the due process is finalised,” he added.
His comments appear to be a response to the general meeting of NMG on April 29, when major shareholders from both sides of the dispute over the alleged takeover of NMG – Suthichai Yoon and Sermsin Samalapa from the NMG side, as well as NEWS and its allies, the new shareholding group – were prohibited by the new chairman from voting in the annual shareholders’ meeting “to ensure fairness”.
NEWS was earlier known as Solution Corner (1998), or SLC. At the April meeting, Suthichai announced his resignation as NMG chairman so that the meeting could proceed without any accusations of bias.
He was replaced by Nittimon Hastinra na Ayudhya, an outsider.
However, more than 1,500 minority shareholders participated in the voting and supported the current management team to continue with their work in a professional manner.
Nittimon said that as chairman he needed to defuse the escalating conflict between the NEWS group and the old shareholder group led by Suthichai, NMG’s founder, and Sermsin by barring them from voting at the meeting. He also removed from the agenda the reappointment of three NMG directors, to ensure fairness to all sides.
