The SET Executive Vice President, Ms. Patareeya Benjapolchai, disclosed that the advisory group of the CG Center, comprising of Prof. Hiran Radeesri, Prof. Kovit Poshyanonda, Mr. Singh Tangtatswas, and Mr. Yuth Vorachattarn, has been discussing with and giving advice to listed companies as well as exchanging views on establishing good governance systems with the directors and executives of listed companies, state enterprises and companies planning to list on the bourse. Since August 2002, the advisor group has met with fifty-eight companies (fifty-one SET-listed and five MAI-listed companies, plus a state enterprise and a soon-to-be listed company).
"By reviewing the visits, we found that most of the listed companies agreed with disclosing their progress on adopting the fifteen principles of good corporate governance in the form 56-1, as this helps enhance investors' understanding and strengthens their confidence in their companies. More than 75% of the listed companies were ready to adopt these fifteen principles as well as the disclosure standards. Many of them have already applied some of the principles. However, they have yet to clearly report their progress in the application of these principles on the form 56-1 and in their annual reports.
"The companies have done well in applying the fifteen principles. The principles that most of them have implemented to date include sending meeting documents in advance to their shareholders, reporting the work of their audit committee, disclosing the remuneration of their directors and executives in their annual reports and through 56-1. Principles yet to be applied involve new concepts such as assigning one independent director to be an authorized person, or disclosing the number of times their directors have attended meetings in their annual reports and forms 56-1. However, most companies regarded these as not difficult to adopt and would do so at the their shareholders' meeting and in the making of their annual reports and forms 56-1 next time," the SET Executive Vice President said.
"So far our advisor group have met with companies' executives, including the complete group of board members, directors, and executives in various units, such as the Office of the President, finance and accounting dept., and the internal audit dept. The directors of many companies have shown great interest in this issue and asked for more than a one-time visit from our advisors. Moreover, they also appreciate that the service of the CG Center have helped companies understand more of the principles as well as helped create good relations and understanding between the SET and the listed companies," Ms. Patareeya concluded.
Of the fifty-six listed companies that the CG Center visited, eight companies were in the property development sector, fifteen companies in banking, insurance, finance and securities sectors, four companies each in the packaging and energy sectors, three companies in agricultural sector, as well as companies in chemical and plastic, food and beverages, hotel and travel services, transportation, vehicles and equipment, warehousing and silos, entertainment and recreation, commerce, and the REHABCO sectors, plus the five companies on the MAI.
The listed companies, companies undergoing the listing process, and state enterprises that are interested in seeking free advice from the CG Center can contact the Center on the 6th Floor, the Stock Exchange of Thailand Building, 62 Rachadapisek Road, Klongtoey, Bangkok 10110, Tel: 0-2229-2604-7, Fax: 0-2654-5424.
