Speaking after the first day of the 2006 Asian Roundtable on Corporate Governance seminar - organised by the SEC, the Stock Exchange of Thailand, the Thai Institute of Directors Association, the Listed Companies Association, the Organisation for Economic Cooperation and Development, and the World Bank Group - Charlee said Malaysia, Hong Kong and India had all faced similar problems of delayed action in criminal law enforcement.

"Representatives from each country said the legal process took up to 10-12 years to enforce as a criminal case needs proven evidence," said Chalee. "After the proven evidence is clear and beyond question, then the legal action follows. But some countries have sorted out the problem [of delays].

"Malaysia has more punishment tools with which to convict in a criminal case than Thailand. Its firms can be punished either under criminal or civil law. Moreover, it can impose a maximum fine of US$5 million [Bt187 million]. In comparison, the fines here in Thailand are very small."

 Chalee said Malaysia's SEC had also been successful in cases where investors file charges for damages in a civil case, without first having to await the outcome of a criminal case. Malaysia has given auditors the authority to present evidence, and its SEC can also confiscate assets and share them with the petitioner.

 "The Thai SEC can also do so [file in a civil case, although it has to await the criminal case outcome]," Chalee said. "The SEC has tried to encourage investors to file charges but it was unsuccessful as petitioners would have to bear a huge expense in doing so. However, we have proposed a class-action plan to help investors. The plan is currently in the decree process for the Council of State to consider."

Chalee added that India had tackled the problem of delayed law enforcement in relation to listed firms by setting up a special court to adjudicate capital-market cases, which has accelerated action. Earlier, a case had to be passed to several agencies, including the Indian SEC and the police, before it could be finalised.

He said the Thai SEC would study other countries' solutions to see if anything can be adopted to facilitate and accelerate legal cases in the Kingdom.

He said Hong Kong faced problems of cross-border listed firms as Chinese companies can now list on the Hong Kong stock exchange. Chalee said Thailand should be aware of what other countries are doing in relation to cross-border listings, as good cooperation between authorities will be important as and when Thailand embarks on the same route.

Siriporn Chanjindamanee

The Nation