SEC to gain more power in disputes
FINANCE Minister Apisak Tantivorawong will propose to the Cabinet that the powers of the Securities and Exchange Commission be increased so that it can dismiss listed companies’ shareholders and directors involved in internal conflicts that damage the business’ ability to function properly.
The idea is to protect minor shareholders and creditors from the impacts of such conflicts, making it easier to force restructuring of a company at its highest levels.
Apisak told a seminar yesterday that his ministry was in the process of revising 20 articles of the SEC Act. Among the changes, the commission would be provided more power to protect minor shareholders when the behaviour of major shareholders or management is detrimentally affecting business operations.
Such internal conflicts can have negative impacts not only on minor shareholders, but also on creditors who have invested in the company or provided loans for it.
To solve this problem, the SEC has to have the authority to intervene, Apisak said. The proposed amendments would also increase the power for minor shareholders and creditors to depose executives and call a shareholders’ meeting to appoint a new management team.
He said that when the revisions to the act have been finalised, he would propose them to the Cabinet by the middle of next month.
Currently, the SEC does not have the authority to do anything when a company’s |major shareholders become embroiled in conflicts that negatively affect the business’ operations, he said.
SEC secretary-general Rapee Sucharitakul said the commission would complete its revisions of 20 articles of the SEC Act by the end of this month, and they would be |forwarded to the Finance Ministry early next month.
