Briefs

The Institute of Directors Association has urged listed companies and securities regulators to toughen their practices and oversight in dealing with directors and executives guilty of malpractice.

In a statement released yesterday, the IOD urged the regulators to disqualify all directors and executives who are found guilty of serious offences under the Securities and Exchange Act. They should be barred from taking directorships at listed companies, it said.

Meanwhile, the conviction procedure should be toughened and the penalties should be intensified. 

Listed companies should establish a system to educate directors and senior executives about laws, regulations, corporate governance, ethics, and their respective duties so that they are equipped with knowledge and understanding to perform their roles properly. 

“In the selection process of directors and senior executives, listed companies should examine previous wrongdoings and penalties imposed for malpractice under the Securities and Exchange Act and take such records into consideration when making the appointment,” it said.

The IOD itself is taking a leading role in this matter, it said. It will suspend companies or directors from the Corporate Governance Report of Listed Companies for two years if they make any transactions that cause damage to the companies or shareholders, disclose false information, or engage in any trading that takes advantage of investors.

“Good corporate governance is a crucial factor in bolstering progress and growth of business and the economy. It is important that all relevant parties play their roles to promote continued good corporate governance in Thai businesses. 

“In this regard, the IOD’s board commends the roles of institutional and retail investors for demonstrating the importance they give to corporate governance and the practice of good corporate governance by listed companies,” it said.

The statement followed a marked increase in the number of cases where directors and executives of listed companies were found guilty and fined by the Securities and Exchange Commission for charges relating to asset malpractice. 

To the IOD, it appears that in spite of the penalties, some boards of directors of the companies still fail to probe and take serious disciplinary actions against such malpractice. Such inaction has caused much concern in some quarters over corporate-governance practices by the boards of listed companies, which are supposed to be the upholders of good corporate behaviour.

 

 

AIS insists no decision yet on 900MHz bidding

 

Advanced Info Service (AIS) submitted a filing to the Stock Exchange of Thailand yesterday to deny reports that it had already decided to have its subsidiary Advanced Wireless Network take part in the upcoming auction of a 900MHz licence.

It said a decision on whether to participate was still under consideration.

On Tuesday, National Broadcasting and Telecommunications Commission secretary-general Takorn Tantasith claimed AIS had informally told him that the company’s board had approved the mobile operator’s participation in the bidding.

 

 

Exim lends further Bt8m to Asia Nampapa Luangprabang

 

Exim Thailand yesterday provided an additional loan of Bt8 million to Asia Nampapa Luangprabang (ANL) to support its expansion of water-supply facilities to serve household and industrial consumption in Laos’ Luang Prabang province.

This brings the total amount lent to the Thai company by the bank to Bt78 million.

The new loan is to finance ANL’s expansion of water-production capacity at its supply facilities in Luang Prabang province from 6,000 cubic metres per day at present to 12,000 cubic metres per day.

Exim Bank provided a start-up loan of Bt70 million to finance ANL’s construction of water-supply facilities in the province, which started commercial operations in December 2013. 

 

UK’s Premier Inn opens first hotel in Thailand

 

Premier Inn, a British hotel chain, has announced the opening of its first property in Thailand – the Premier Inn Pattaya.

“Pattaya remains a top holiday destination and we’re confident that our new hotel will set a definitive benchmark in our hospitality sector for Pattaya, becoming the preferred choice for value-conscious travellers,” said Premier Inn International’s president and managing director, Ratnesh Verma.

 

ECL strengthens capital base for used-car leasing

 

Eastern Commercial Leasing (ECL) has a strong capital base to prepare for offering loans in the used-car segment after issuing new shares to strategic partner Premium Financial Services (PFS), a giant leasing operator from Japan.

ECL aims to become the auto-leasing leader in Thailand within three years, Danucha Veerapong, chairman of the executive committee, said yesterday.

 The growing trend of used-car sales in Thailand is a positive factor supporting ECL business, while PFS will bring technology and know-how for the extended warranty of used cars to improve the trading standard at ECL, he said.

The company targets outstanding loans of Bt3 billion this year, against Bt2 billion at the end of last year.

ECL’s shareholders approved an increase in registered capital of Bt203.58 million by issuing newly shares to PFS on a private-placement basis at the offering price of Bt1.57 per share.

ECL’s registered capital will rise to Bt1.09 billion from Bt892.16 million, with PFS’s stake rising from 25 per cent to 25.5 per cent.

ECL will use the capital from selling the new shares for debt repayment and as a reserve for expanding its used-car leasing business, Danucha said.

“The [higher] excise tax for new cars has impacted on consumers’ buying decisions, but for the used-car market, we expect overall sales this year will increase by 20 per cent or 2 million units, which is an opportunity for us.

“ECL hopes to gain a market share of over 20 per cent within three years, which would take us to leadership in this business,” the executive said. 

Yohichi Shibata, representative director of PFS, described Thailand as being at the centre of the Asean Economic Community, which presented a good opportunity to grow and expand the used-car market.

The company will bring the warranty service that it currently operates in Japan in order to increase the reliability and trust factor for customers when buying a used vehicle, he added.