NMG chairman quits after SEC files complaint
The chairman of the Nation Multimedia Group (NMG) yesterday refuted the accusation levelled against him by the Securities and Exchange Commission (SEC), which has filed a criminal complaint against him, and insisted his “sincere interest” was to protect a
Nittimon Hastindra na Ayudhya yesterday resigned as NMG chairman after the SEC filed a criminal complaint against him for failure to perform his duties at the annual shareholders’ meeting.
As a result of the SEC action, Nittimon was automatically barred from holding positions on the board of listed companies under the Securities and Exchange Act (SEA) of 1992.
The NMG chairman refused to pay the fine to prevent the complaint and denied any wrongdoing after the SEC accused him of infringing on the rights of some shareholders who were barred from attending and exercising their voting rights at the company’s annual general meeting held on April 29.
Nittimon’s action was in violation of Section 33, Section 102 and Section 105 of the Public Companies Act of 1992, according to the SEC’s statement circulated yesterday, citing the Business Development Department at the Commerce Ministry.
NMG’s executive directors are in the process of calling on the board of directors to accept Nittimon’s resignation as well as consider appointing Sermsin Samalapa, the vice chairman, as acting chairman.
According to the SEC’s statement, the regulator has filed a criminal complaint against him with the Economic Crime Suppression Division of the Royal Thai Police (ECD Police).
“I refused to pay the fine to the SEC, meaning I deny the SEC’s accusation. This will be a chance to prove my sincere interest to protect the interests of all NMG’s shareholders,” said Nittimon.
He said he had submitted his resignation letter as NMG chairman on December 21 after acknowledging that the SEC was set to file a case against him.
“I’m ready to fight the case and to insist to the public that I work in line with principle of good corporate governance,” said Nittimon.
His action was deemed a failure to perform duties responsibly, carefully and honestly in violation of Section 89/7 of the Securities and Exchange Act of 1992 (SEA), which caused him or other persons to gain benefit and was consequently liable to the penalties as prescribed in the first paragraph of Section 281/2 of the SEA, according to the SEC’s statement.
Since Nittimon had refused to enter the settlement process by paying a fine, the SEC filed the complaint with the ECD Police for further legal proceedings. Consequently, he is deemed as having untrustworthy characteristics of a director and executive of issuing and listed companies, and is thus automatically barred from holding such positions in such companies as per the SEA.
The filing of a criminal complaint commences the criminal justice administration whereby the consideration of whether a defendant is guilty will be proceeded by the inquiry official and the public prosecutor, and the court will judge the case.
