|
KEY POINTS
|
The capital market organizations announced to reaffirm their collective commitments to safeguarding the interests of investors and stakeholders and preserving the good corporate governance standards among listed companies for the sustainable advancement of the Thai capital market on December 20, 2024 as detailed below:
- To closely monitor relevant developments and implement appropriate actions within their authority.
- To collaboratively strengthen good corporate governance standards across listed companies, with specific focus on transactions involving potential conflicts of interest.
- To remain committed to fostering good corporate governance among listed companies while proactively preventing and addressing any issues that may undermine investor confidence.
FETCO Chairman and Thai Listed Companies Association (TLCA) Vice Chairman Kobsak Pootrakool highlighted that FETCO remains unwavering in its efforts to promote business transparency and strengthen good governance standards among listed firms. This is crucial for building investor trust since good governance is the foundation that propels the sustainability of businesses and the competitiveness of the Thai capital market internationally.
Thai IOD Chief Executive Officer Kulvech Janvatanavit stated that organizational sustainability stems from public trust, emphasizing Thai IOD’s strong support for the role of boards of directors as the moral compass of their organizations. By collaborating with management teams, they cultivate good corporate governance from the top down, fostering organization-wide integrity awareness to build a strong culture of corporate governance and compliance. Thai IOD expects board chairpersons to take the lead in fostering an effective board culture that encourages active participation and meaningful dialogues among directors. Independent directors are expected to act as steadfast stakeholder advocates, representing their expectations and safeguarding their interests while steering companies toward the achievement of actual goals and expectations.
Investment Analysts Association (IAA) Chairperson Paiboon Nalinthrangkurn mentioned investment analysts intensifying focus on environmental, social, and governance (ESG) considerations which reflects investors' growing pursuit of investments that generate both satisfactory financial returns and meaningful social impact. ESG factors significantly influence the landscape of business risks and opportunities in today's market environment while market transparency is indispensable for capital markets. He also remarked that listed companies prioritizing short-term profitability over long-term implications risk facing heightened scrutiny or resistance, ultimately jeopardizing their reputation and performance.
Association of Investment Management Companies (AIMC) Chairman and ESG Collective Action Committee Chairperson Chavinda Hanratanakool highlighted that executives and fund managers of asset management companies, as institutional investors dedicated to integrity and unitholder protection, maintain heightened vigilance over ESG risks. She noted that governance issues among Thai listed companies, which have surfaced repeatedly this year, remain a top priority alongside financial performance metrics. In response, asset management companies have collectively strengthened their ESG Collective Action framework to enhance fact-finding, problem identification, impact assessment, and investment guidelines for companies facing ESG issues. Through this coordinated effort, the industry seeks to be a driving force in elevating the standards and quality of Thailand's capital market.
SET President Asadej Kongsiri underscored the importance of timely and comprehensive market communication in today's environment. Listed companies must disclose information with consideration of impacts on all stakeholders, particularly investors, ensuring they receive the necessary information for investment decisions. While regulatory disclosure requirements form the baseline obligation, listed companies should embrace transparent and public communication of material information that may affect investors who are considered key stakeholders. He reiterated SET's dedication to cultivating a market ecosystem where listed companies provide equal, comprehensive, and timely disclosures that enable informed investment decisions.
