Rosana Tositrakul, centre, and Saree Aong-somwang, right, full of joy after the court’s ruling.

lThe State Enterprises Corporatisation Act outlines the privatisation process, empowering the Cabinet, the Corporatisation Committee, the Company-forming Committee and the Public Hearing Committee to take charge of each step in the preparations to transform state capital into shares.

lUpon completion of these preparations by relevant authorities, two royal decrees are to be enacted to enforce the privatisation plan, one of which deals with the charter of the new company while the other is to dissolve the state enterprise.

lAt the centre of litigation is whether the two royal decrees relating to the Egat privatisation have been lawfully enacted.

lRelevant provisions relating to the Company-forming committee ban its members from having a conflict of interest. On examination of evidence, the court finds Olarn Chaipravat, a committee member appointed for his expertise, has conflicts of interest with Egat.

l Olarn sits on the board of Shin Corp, which holds the controlling stake in AIS, the operator of a telecom business, while Egat runs a subsidiary, Egat Telecom-munication Co, which operates a network of communication fibre optics.

lHe is also a board member of PTT Plc, a supplier of natural gas to Egat.

lUnder the State Administra-tion Act, activities committed under conflicts of interest are penalised by nullification.

lPrinya Nutalai, vice minister for Natural Resources and Environment, chaired the Public Hearing Committee. This is unlawful because a political office holder is banned from conducting a public hearing.

lFurther, the Public Hearing Committee failed to satisfy prescribed steps for publicising and soliciting public opinion on the matter.

lIn regard to the royal decree relating to the charter of Egat Plc, its provisions are unlawful for the transfer of assets and land of two power plants in Bang Pakong, deemed state property, to private hands.

lThe company charter failed to limit the appropriation right, which is strictly under public jurisdiction, not a private entity.

lIt also provides leeway for electrification that could lead to an infringement on private plots and assets under the loose supervision of a regulatory body, Electricity Production Committee.

lBecause of the above findings, this court rules to cancel two royal decrees enacted in 2005, one on the charter of Egat Plc and another on the dissolution of the state enterprise Egat.