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SEC prepares to issue regulations that the “Chairman” and the “Manager” of IPO companies and listed companies to be different persons



Friday 14 February 2020 | No. 27 / 2020


Bangkok, Friday 14 February 2020 - SEC is seeking comments on the issuance of the regulations that the Chairman and the Manager of IPO companies and listed companies must be different persons, in order to avoid the situation where one person has unlimited power, and this regulations will enhance corporate governance.

SEC plans to issue additional requirements relating to the structure of the Board of Directors and Management of IPO companies and listed companies to the current regulations on the check and balance system (for example, independent directors and audit committee members) that will enhance the image and create confidence for the Thai capital markets.  In addition, this approach is in line with the principles of corporate governance (CG), which has been adopted since 2002 by most IPO companies and listed companies.

SEC, therefore, has a plan to issue regulations that an IPO company must separate the positions of the Chairman and the Manager.  Accordingly, the Stock Exchange of Thailand will also adopt this principle for existing listed companies.  It is expected that the requirement will be effective in 2021.

SEC has made the public hearing document available at  https://www.sec.or.th/hearing.  Related persons and interested parties may express their comments on the website or send comments to e-mail: rachamar@sec.or.th or  parthomrat@sec.or.th until 28 February 2020.

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