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Published on January 25, 2008

The amended Act, which is pending announcement in the Royal Gazette before it comes into effect, has raised concerns with executives of listed companies that penalties and procedures would be too tight and it would place additional cost burdens on them.

SEC deputy secretary-general Prasong Vinaiphat yesterday was quick in attempting to allay the concerns, saying that the revised law simply made the procedural framework clearer, not more stringent.

The revised law governing the responsibilities of company directors and executives requires the securities watchdog to oversee listed companies, instead of the Commerce Ministry as is currently the case, Prasong said.

"The law will make the procedures clearer. The SEC will be involved in supervising information disclosure and financial statements. We will not interfere in business management. However, we admit that the SEC's supervision of brokers will be tightened as they come under the direct responsibility of the SEC," he added.

Prasong said the amended law's requirement that all listed companies must have a board secretary would not be much of a financial burden, but would make the reviewing of board decisions more transparent.

"We hope that the clarification to directors and executives will alleviate their concerns that the amended law is not as severe as they thought. Also, it will give internal auditors more checks and balances," he said.

The SEC included world corporate-governance standards in the Act's amendments, so that Thai listed companies would be more attractive to foreign investors, Prasong said.

Siriporn Chanjindamanee

The Nation