Wichai Poolworaluk, president of the TIA, said last week that the association was sharing information about these listed companies with the Stock Exchange of Thailand and the Securities and Exchange Commission.

He said this year was the first that the TIA, a private body that protects retail investors' interests, could attend the shareholder meetings of all 433 listed companies. Attending shareholder meetings is one way the association monitors listed firms that do not have transparent practices.

Wichai said that after attending the shareholder meetings, the association had decided to put five to 10 listed firms on its watch list. He said the financial statements of those firms contained abnormal transactions that should affect their stock prices.

Wichai explained that the association was concerned that retail investors who use their savings to invest in the stock market may not know of these abnormal transactions and could be lured into buying stocks at unreasonably high prices.

"The TIA not only attends shareholder meetings but also cooperates with related parties, including the Stock Exchange of Thailand and the Securities and Exchange Commission. We share information and consider whether there has been full information disclosure. Now, we found that there are at least two listed firms that have apparently acted against the law, but we can't reveal their names," he said.

He said the TIA did not have the authority to punish companies, but would closely follow information and exercise shareholders' rights.

In an example of this, the TIA earlier attended Roynet Plc's shareholders' meeting and eventually forced the company's management to take responsibility for wrongdoings. Roynet stock was later delisted from the market.

After attending the shareholders meetings of 433 listed firms, the TIA found that about 10 listed companies had not intended to hold shareholder meetings but had instead sought to conduct "paper meetings."

Siriporn Chanjindamanee

The Nation