SEC to be given power to sack directors of listed firms

Finance Minister Apisak Tantivorawong launches the Corporate Governance Code at the Stock Exchange of Thailand in Bangkok on Friday, when he also announced planned amendments to the Securities and Exchange Commission Act. (Photo by Pattarachai Preechapanich)

The Finance Ministry will propose a legal amendment to the cabinet next month to empower the Securities and Exchange Commission (SEC) to sack directors of problematic listed companies affecting the public.

Finance Minister Apisak Tantivorawong announced the move on Friday.

If, for example, directors' actions damage the company and caused the share price to drop, or default on credit obligations, the new law would enable the SEC to intervene and dismiss the directors to prevent further damage to the public.

"The new SEC bill will strengthen the growth of the Thai equity market," he said.

The present law on the SEC only allows it to lay down regulations for listed companies to follow, he said

The amending bill would also require the SEC to have a plan to develop the equity market over 10-20 years, he said. The Finance Ministry would monitor the implementation of the plan through the various stages.

Mr Apisak said he would propose the amendment to the cabinet in mid-April and once approved it would be tabled in the National Legislative Assembly.

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