Bangkok--Mar 21--SET
SET Executive Vice President Ms. Sopawadee Lertmanaschai announced that the Electricity Generating Pcl. (EGCOMP) had received its corporate governance (CG) rating for the period 2005 from the Thai Rating and Information Services Co., Ltd. (TRIS). This year EGCOMP received a ”very good” score with a total 8.05/10 points, an improved grade from its previous ”good” CG rating in 2002. The criterion in which EGCOMP scored higher was in Shareholders’ Rights.
“The improvement in its CG Rating shows that EGCOMP’s directors and management are determined to continue to keep on the CG path. They have developed and improved their CG practices. This has positively affected the company’s image.
“Most importantly, they have placed increased importance on Shareholders’ Rights, as well as constantly promoting a greater understanding of CG among its management and employees. EGCOMP’s achievement is therefore admirable and should act as a model for other corporations in applying their CG principles,” the SET EVP said.
EGCOMP has received privileges from the SET since its first CG rating. Since the SET extended, for another one-year period, its privileges promotion for the first group of listed companies participating in the CG Rating program, EGCOMP’s privileges will be extended as well. This is aimed at encouraging the listed companies to continue to develop their CG practices to the level that they are acknowledged by outsiders and the general public. Listed companies receiving at least a ”“good” CG Rating, or 7 on a scale of 10, will get a 50% discount in annual listing fees for two consecutive years. Companies interested in receiving a CG Rating to be eligible for this privilege can apply until December 31, 2005.
Managing Director of TRIS, Dr. Vorapat Tothanakasem, noted that EGCOMP has obviously improved its CG in the Shareholders’ Right criterion, in which it received 7.73 points. EGCOMP has provided a mechanism for the shareholders to freely exercise their rights. The company provides adequate and detailed information to its shareholders prior to every meeting, assists its shareholders when they are unavailable for meetings by empowering its 6 independent directors to act as shareholders’ proxies with the shareholders’ consent, discloses all vote details, and produces shareholders’ meeting reports that contain all essential details.
In addition to its improvement in Shareholders’ Rights, EGCOMP also did better in CG Culture, where it received 8.37 points. EGCOMP’s board of directors has resolved that a CG culture and compliance to CG principles be included in its corporate business plan 2004-2008. The board has also required that CG be one of the corporate KPIs (Key Performance Indicators). The company’s CG Committee also produces a good CG database and holds various activities to promote a greater understanding of CG among EGCOMP’s employees.
EGCOMP received 7.62 points in the Composition and Roles of the Boards of Directors and Management criterion, which is an improvement over its last rating score, because the company has developed a more balanced structure in its board of directors. The number of independent directors has increased by two, and, out of all directors, more than half of them are non-executive.
Dr. Vorapat added that: “EGCOMP received its highest score in Information Disclosure, with 8.80/10 points. It discloses both its financial and non-financial information very well. The company actually received a little lower score than in its last rating partly because TRIS compared the companies in the same industries which have continuously improved their CG, hence making it necessary to adjust all the standards upwards. Nevertheless, there shouldn’t be any problems about further improvements.”
For more information on CG, please browse www.cgthailand.org. If interested in CG Rating announcements, please see www.tris.co.th
For more information,
please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036
Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049
Watsamon Saowakhonsathien Tel: 0-2229-2797 End.