Directors of listed firms told to be vigilant on SEC rules
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THE THAI Institute of Directors has urged the board of directors of listed companies to be more vigilant in monitoring activities that may violate the rules and regulations of the capital market.
Bandid Nijathaworn, president and CEO of the institute, said the Securities and Exchange Commission (SEC) had recently filed a criminal complaint against two listed companies and one individual over their alleged violation of the SEC’s rules in the share acquisition of Nation Multimedia Group (NMG).
According to the SEC complaint, News Network Corp and Polaris Capital as well as Siwasit ainamphueng did not comply with the share acquisition rules when buying NMG shares in December 2014.
Share purchase
Under the SEC’s rules, any share purchase in excess of 5 per cent of a listed firm’s shareholding is required to be reported to the SEC, while any share purchase in excess of 25 per cent of a listed firm’s total shareholding is required to be accompanied by a tender offer for the rest of the shares.
The boards of these listed companies should be more watchful and ensure that their companies follow the rules and act in a transparent manner.
Media reports
There have been recently more mass media reports on wrongdoings committed by company directors and top executives, reflecting the public’s growing awareness of this issue and concern about the behaviour of these persons.
There should be stronger penalties for violators of the rules and regulations to ensure that their abuse is not repeated, he added.
