Bangkok--Apr 1--SET
Tipco Foods (Thailand) Pcl.’s determination to improve its CG rating has yielded results. TIPCO voluntarily applied for a CG Rating review, yielding a much-improved score from last year’s ‘good’ to this year’s ‘very good’ with an overall rating of 8.01/10.
Executive Vice President of The Stock Exchange of Thailand (SET) Ms. Sopawadee Lertmanaschai reported that, as rated by the Thai Rating and Information Services Co. Ltd. (TRIS), Tipco Foods (Thailand) Pcl. (TIPCO) had earned a ‘very good’ corporate governance (CG) rating after the company received 8.01 points (on a 10 point scale) for its recent review of its CG. This is a significant increase over last year’s ‘good’ rating at 7.32 points when the company first participated in the CG rating program.
“This significant improvement in TIPCO’s CG rating reveals its true commitment to the continual developing of its corporate governance. The SET, thus, would like to also encourage other listed companies to participate in the CG Rating program. If companies receive a ‘good’ rating level or above from their first participation, they will receive a 50% discount in their annual listing fee from the SET for 2 consecutive years. Presently there are a total of 12 listed companies participating. Five of these companies, including TIPCO, have had their original CG Rating reviewed.
TIPCO’s determination can also be seen in its receiving the ‘Best Corporate Governance Report’ Award from the SET Awards in both 2003 and 2004. This relates to TIPCO’s information disclosure, the criterion that it received its highest score in its CG Rating review on this time,” said Ms. Sopawadee.
The Managing Director of TRIS, Dr. Vorapat Tothanakasem, noted that: “Even though TIPCO is comparatively smaller than other currently participating companies in the CG rating program, it has demonstrated its true commitment in applying CG to its company’s operations. This is the second year TIPCO has voluntarily participated in the program. The results of this year’s rating will entitle TIPCO to a 50% discount in securities offerings and annual fees from the Securities and Exchange Commission (SEC).”
TIPCO received its highest score in Information Disclosure, with 8.24/10 points. The company has improved its website by adding information useful for investors (e.g. its annual report and 56-1 form), so as to provide better access to the information. TIPCO has also disclosed all its relevant and crucial information completely and within the required time period.
The company’s second-best score was 8.19 points in Shareholders’ Rights. TIPCO has improved its checks-and-balance system to become even stricter. The company’s audit committee is required to review connected transactions every quarter. As for measures to prevent and monitor insider trading, its board of directors and management have to report their current holdings of TIPCO’s shares in the company’s board meeting quarterly.
TICPO has provided opportunities to ensure that the shareholders will be able to fully exercise their rights. The company provides sufficient details in its meeting invitation letters. It organized a very good Annual General Meeting in 2004. Voting took place as scheduled in the meeting’s agenda. There was no mixing of voting for different issues. The tallying of votes was quick and transparent. TIPCO’s CG activities could serve as a model for other companies.
In the Composition and Roles of the Board of Directors and Management section of its rating, TIPCO scored 7.94/10 points. The Company has a good configuration of checks-and-balances. More than half of the board are non-executive directors. In the past year, the audit committee has also done a very good job. There is an auditing system in various areas, resulting in stronger corporate checks-and-balances.
TIPCO also earned an improved score in the CG Culture section where it received 7.57/10 because its board of directors has been placing importance on promoting, monitoring, and assessing the implementation of CG within the organization.
For more details about Tipco Foods (Thailand) Pcl., please browse www.tipco.net. Concerning CG Ratings, please browse the TRIS’ website, www.tris.co.th, and for information on CG, please browse www.cgthailand.org.
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.