Bangkok, 24 October 2019 – The SEC is pleased with the World Bank’s Doing Business Report 2020, particularly in the area of minority investor protection whereby Thailand has risen to the World’s No. 3 rank among the 190 participating countries – a significant jump from No. 15 in the preceding year. This is the first time since 2007 that Thailand has been on the top 10 ranking in the aforesaid area thanks to the SEC’s integrated cooperation, proactive work practices, and presentation of supporting evidence.
SEC Secretary-General Ruenvadee Suwanmongkol said: “Today,
the Minister of Finance has announced the results of the World Bank’s Doing
Business Report 2020, with the overall ranking for Thailand at No. 21, six levels
higher than No. 27 in the preceding year, and No. 5 within the Asia-Pacific
region. Two areas of better performances were (1) Dealing with Construction
Permits and (2) Protecting
Minority Shareholder.
“During the course of assessment, the SEC
proactively participated in the revision and promotion of various measures to
enhance minority investor protection, resulting in the significant rise to the
world’s 3rd highest rank with 86 scores, from No. 15 with 75 scores in
the preceding year. Such development was a result of the
improvement in the Ease of Shareholder Suits Index, which rose from 8 to 9 out of
the total 10 scores, as well as the Corporate Transparency Index which increased
in the area of shareholders’ rights to propose agenda items for the
shareholders meeting. This marked the first time since 2007 that minority
shareholder protection score was among the top 10 ranking,”
This significant leap is the result of
the SEC’s adjustment of its working practices since the month of May this year.
Specifically, the SEC proactively initiated for the first time a conference
call with the World Bank assessor in Washington D.C., USA and integrated
working cooperation with other relevant organizations. The SEC also invited
representatives from the Court of Justice and the Department of Business
Development, the Ministry of Commerce, to present their respective clarifications
to the assessor in the same sessions as well as submitting empirical evidence and
answering the assessor’s inquiries.
“Protecting investors in the capital market is one of our
most important duties. Such significant improvement in the area of minority
investor protection proves that Thailand has established a stronger mechanism, both
in terms of legal and practical implication in the area of minority shareholder protection. This can
lead to stronger confidence of both Thai and foreign investors in the capital market,” added SEC Secretary-General.
Doing Business Report consists of 10 assessment
areas, namely: (1) Starting a Business, (2) Dealing with Construction Permits, (3) Getting Electricity,
(4) Registering Property, (5) Getting Credit, (6) Protecting Minority Investors,
(7) Paying Taxes, (8) Trading across Borders, (9) Enforcing Contracts, and (10)
Resolving Insolvency. In conducting the assessment, the World Bank takes into consideration
governing laws and associated regulations, as well as gathers questionnaire
data and conducts in-person interviews with representatives from relevant
sectors.
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