SECC subjected to special audit

 The special audit result must be submitted to the SEC and disclosed to the public within Dec 30.

 The order followed the lending of Bt245 million to four individuals by SECC's subsidiary, SECC Holding Co Ltd. SECC informed the securities watchdog that such lending was not approved by the company's board of directors, but the answer was considered inadequate as the watchdog questioned how the subsidiary could lend a high amount of amount though it was not a financial institution. Moreover, the chance the borrowers may not return the loan is high and that could affect SECC financially.

 The SEC said in a statement that it launched the action to ensure investors of proper protection of shareholders, in line with the Securities and Exchange Act which requires directors and executives of listed companies and their subsidiaries to comply with the law for the maximum benefits of shareholders.

 Directors and executives who violate the law and cause damage to the companies are liable to fines at least Bt500,000 or in case of fraud, imprisonment of no more than 5 years, or both.