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"By law, the meeting should be rescheduled within 14 days at the soonest and two months at the latest. Some minor shareholders want to solve this quickly and we will push for this," said Vinit Samritpricha, who was appointed the leasing company's president in March.

The meeting was scheduled to consider the proposed investment of Bt543.6 million to buy a 63.95-per-cent stake in Deva Development from Pinmook and Chanon Senadisai, who also proposed to tender for Scandinavian Leasing's shares at Bt9 apiece.

Market observers view this move as an attempted backdoor listing, as Scandinavian Leasing's business model would be reshaped to include property development.

Vinit said SMC Motors submitted a letter, signed on June 22, to Scandinavian Leasing's board, indicating the inability to attend the meeting. It did not explain why.

Due to the absence of SMC Motors, which holds a 49.9-per-cent stake in the leasing company, the meeting quorum could not be constituted. Attending the meeting were only shareholders with a combined ownership of 9.6 million shares, or 15.11 per cent of the firm's issued shares.

By law, to make a quorum, the presence of shareholders with a combined 33.33-per-cent holding is required.

Vinit said Scandinavian Leasing's board was of the view the company needed to diversify into other businesses due to fierce competition in the leasing business, which could not generate profits or even support the company financially. Several commercial banks have entered the leasing business, leaving smaller players at a disadvantage, due to higher funding costs.

He added that Scandinavian Leasing had cut costs in order to survive. The number of employees has been reduced from 100 over the past few years to 30 now. The lending portfolio contains about 1,000 accounts.

In the first quarter, the company posted a net loss of Bt1.6 billion.

One shareholder speculated SMC Motors had skipped the meeting because it did not want to answer minor shareholders' questions.

"I don't believe this diversification would generate good returns for Scandinavian Leasing. The tender offer price for its shares is too low. Even the independent financial adviser does not support the deal," the shareholder said.

The Securities and Exchange Commission had asked all minor shareholders to attend yesterday's meeting, in order to protect their interests.