TPI board names new chairman and president
Thai Petrochemical Industry Plc's new board of directors yesterday named a chairman and president, but neither has executive powers until the Commerce Ministry gives its official endorsement.
The board of directors held an extraordinary meeting yesterday after shareholders appointed 15 new directors on Thursday, including representatives of new shareholders led by PTT Plc. General Mongkol Ampornpisit was named company chairman. PTT president Prasert Bunsumpun and Pakorn Malakul Na Ayudhya were named vice chairmen. As expected, Piti Yimprasert, president of Thai Oil Plc, a PTT subsidiary, was named TPI president under a three-year contract. The new appointments may not be legally binding at this point, however. That's because the Nonthaburi Court earlier issued an order forbidding the Finance Ministry from cancelling a shareholders' meeting that was scheduled for Thursday. "It remains unclear where the designated power to sign company documents resides. It is understood that, at this moment, the power is still in he hands of the old management," Piti said. Company founder Prachai Leophairatana is fighting to maintain control of TPI, arguing that the shareholders' resolution was illegal, because the Commerce Ministry has not approved the board appointments. Prachai claims he still is chairman of the TPI board. On Wednesday, the old TPI board, controlled by Prachai, appointed 10 new directors including his wife, Orapin, and several members of his family. Prachai was voted chairman. At present, there are two lists of directors and the Commerce Ministry will next week rule which is legal. Until then, the new shareholders do not have the power to tackle TPI's debts and introduce strategies to boost the company's performance. After exiting its debt-rehabilitation plan, TPI asked the Stock Exchange of Thailand for permission to remove its shares from the Rehabilitation sector. SET President Kittiratt Na Ranong said that TPI stock would be traded in its original sector only when there the confusion over the board of directors and the management structure is cleared up. "It is highly risky to do so now. But once the issue is clearer, we will immediately consider moving it back to the original sector," Kittiratt said.
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