“Moreover, the SET plans to further develop listed companies to obtain a 5 % higher average on their CG score in 2005 over this year’s. At present, all listed companies have an average CG level of 60% while those listed in the SET50 have an average CG grade of 65%”, said Ms. Sopawadee.
The SET will push all units related to the capital markets to play expanded roles in this area. Two examples of these expanded roles include the promoting of both the use of CG estimates among securities analysts in their investment advice and the disclosure of exercised votes by investors’ representatives among institutional investors.
“For the CG movement in 2005, the SET will adjust its focus to better be in line with that of the OECD (Organization for Economic Co-Operation and Development). The adjusted focus will seek to provide greater in-depth information to promote the “Substance over Form” idea through several activities and wide-scale public relations. Our actions will show our determination behind this move. Attention will be given to companies listed on both the SET and the Market for Alternative Investment (mai), with the plan to see listed companies on the SET50 spearhead the move, because they are prepared to assume the responsibilities of being role models”, she continued.
Ms. Sopawadee went on, “In 2004, the SET spent THB20 mln. to promote CG, particularly in the areas of shareholders’ rights and the directors’ efficiency at work. We focused on these areas because both the shareholders and the directors play key roles in any substantial improvements in good CG.”
In addition, the SET has provided financial support for almost 2,000 company directors, which are almost 50% of all directors, to attend the Directors Accreditation Program (DAP) and the Directors Certification Program (DCP) of the Thai Institute of Directors. All attending directors came from the 446 listed companies. The SET also provided advice on good CG to the directors and management teams of 91 other listed as well as numerous to-be-listed companies and other market-related organizations.
At the same time, the SET also cut down its annual fee by 50% for listed companies that received “Good” to “Excellent” CG rankings by the Thai Rating and Information Service (TRIS). Altogether, the SET has spent around THB17 mln. in its CG promotions for listed companies”, said Ms. Sopawadee.
10 listed companies that were willing to be ranked by TRIS and have already received “Good” to “Excellent” CG rankings from 2002 to the present, in chronological order, are Kasikorn Bank Pcl. (KBANK), Bangkok Aviation Fuel Services Pcl (BAFS), the Electricity Generating Pcl. (EGCOMP), Eastern Water Resources Development and Management Plc (EASTW), The Siam Industrial Credit Pcl. (SICCO), Tipco Foods (Thailand) Pcl. (TIPCO), Ratchaburi Electricity Generating Holding Pcl. (RATCH), Krungthai Bank Pcl (KTB), Siam City Bank Pcl. (SCIB), and PTT Exploration and Production Pcl. (PTTEP). The SET has extended this special cost-saving privilege until December 31, 2005 to include other listed companies interested in receiving a “Good” or “Excellent” CG ranking by TRIS.
