The Stock Exchange of Thailand (SET) Chairman, Mr. Chavalit Thanachanan, as a chairman of the Sub-Committee on Education and Public Relations for Corporate Governance of Thailand, revealed in 2003, the NCGC, headed by His Excellency the Prime Minister, will move forth to promote good governance in all industries. Good governance is a key tool in boosting confidence among both local and foreign investors. The issue has seen major developments in amendments to public company law, securities law, and class action law to protect shareholders' rights. Authorities are speeding up the implementation of the law on auditor's qualifications and improving the efficiency of law enforcement.
Mr. Chavalit said, "the various scandals to listed companies in Thailand and abroad has led to a decline in investors' confidence. Therefore, listed companies must emphasize good corporate governance by reorganizing their internal structure and disseminating information to the public. The SET has mapped out 15 principles concerning good corporate governance. They can be use as initial guidelines for listed companies to develop corporate governance. Listed companies are asked to reveal their implementation or the reasons they cannot implement the 15 principles through their annual reports and Form 56-1.
Moreover, the SET has set up a Corporate Governance Center to oversee activities of listed companies. The center will be responsible for holding activities to promote knowledge about corporate governance, dispense advice and exchange information on corporate governance. The center also establishes an advisory team to advise the board of directors and management of listed companies and companies wishing to list on the SET or the MAI. In the past year, the advisory team has met with executives from 86 companies. In 2003, the team also plans to meet 200 companies, 38 of which are being targeted in the first quarter."
Apart from these measures, the NCGC will launch the website www.cgthailand.org, which will serve as the information center on corporate governance in Thailand. Some of the ways in which the website will help promote the concept will include promoting corporate governance among companies and reporting on developments of corporate governance in Thailand. The information on the website can be used as a reference on the subject and will be an important means of publicizing the developments of corporate governance in Thailand for both local and foreign investors in hopes of building confidence in Thai businesses. The committee will also hold a seminar entitled "Road to Corporate Governance" on April 10 to inform the public on the importance of corporate governance. The seminar will be held at the Queen Sirikit National Convention Center with Deputy Prime Minister, His Excellency Dr. Somkid Jatusripitak, presiding over the event.
"The website www.cgthailand.org will dispense information such as the definition and importance of corporate governance, the awards given to companies with good corporate governance, and a name list of the board of directors of listed companies. In addition, the website will also house information on organizations and individuals, which have received rewards on corporate governance, and guidelines to develop corporate governance for listed companies, securities firms, commercial banks, auditors, and shareholders. Information can be downloaded free, and the website will also provide links to related agencies for additional research. There will be a mini-exhibition to demonstrate www.cgthailand.org at the seminar as well." the chairman said.
The NCGC will hold a seminar titled "Road to Corporate Governance" on Thursday, April 10, 2003 at Plenary Hall 1 of the Queen Sirikit National Convention Center from 12.30-16.30. This seminar will emphasize Thailand's desire to promote corporate governance and the need for corporate governance among companies in the country. Moreover, the seminar hopes to stimulate the management of listed companies, securities firms, auditors, shareholders, and related people to understand the importance of good governance and hear the experiences of companies, which have benefited from it.
The seminar will be presided over by Deputy Prime Minister, His Excellency Dr. Somkid Jatusripitak, who will also award gold cards to companies which were rated "good to very good" in corporate governance. Dr. Somkid will also give out the "Board of the Year Awards". Executives from leading companies, who will be present to talk about their experiences in implementing corporate governance, include Banpu Plc President, Mr. Chira Phanupong, PTT Plc Managing Director, Mr. Viset Joopibal, and Thai Farmers Bank Plc Vice-President, Mr. Siriwut Siempakdee.
Those interested in attending the seminar "Road to Corporate Governance" and taking part in the award ceremony on April 10, 2003 from 12.30-16.30 at Plenary Hall 1, Sirikit National Convention Center can make reservations free of charge at 02-229-2222 from today onwards. Every attendant will receive a free CD-ROM on the "Road to Corporate Governance".
