Listed companies’ information is crucial for making decisions in investing, as well as enabling investors to claim their other benefits/rights. Therefore many people, including investors, shareholders, securities analysts and the press, pay close attention to all information released by listed firms. Company executives are inevitably required to answer queries and often wonder what should be discussed as well as the scope of the issues and related details.
“The SET has produced an executive handbook for disclosing information to provide clear guidelines for companies’ executives as to what information to give out, when and how much. The handbook also provides examples of frequently asked questions for the executives,” Mr. Suthichai said.
The executive handbook was produced based on numerous discussions with related parties, e.g., the Listed Companies Association, the IR Club, and the Securities Analysts Association. The handbook was approved by the SET Board of Governors on November 23, and is expected to precisely correspond to companies’ needs.
In addition to producing the executive handbook, the SET initiated the ‘Training and Networking for Contact Persons’ (TaN) project at the beginning of 2005, to educate contact persons of all listed firms about essential issues. This year, 15 sessions of TaN have been held, with 370 listed firms attending. In 2006, the program will continue to be held and will also be developed to better fit the needs of each interest group such as TaN for Beginners and TaN for CEOs.
Mr. Suthichai also spoke at another seminar, entitled “REHABCO Companies on Their Final Bend”. He stated that there were several factors in 2005 that adversely affected the economic conditions in Thailand and the operational results of listed firms. Therefore the SET would consider extending the rehabilitation period for listed companies on a case-by-case basis. Eligible companies will be those having met all other requirements but had not yet achieved net profits for three consecutive quarters or a whole-year, as required. Firms wishing to extend their rehabilitation period must apply for the extension and will be considered on a case-by-case basis.
Companies ineligible for a rehabilitation period extension are those that have been unable to recuperate within the two-year period. The conditions making them ineligible include having a negative shareholders’ equity and/or an inability to meet debt-restructuring requirements and/or possessing a rehabilitation plan unfair to small shareholders. Their ineligibility can either be from a single factor or a combination of factors. Any companies found to be not eligible for the extension the SET Board will consider for delisting in March 2006.
