Bangkok--13 Jul--SET
Today ( July 10, 2009), Thai Institute of Directors (IOD), Securities and Exchange Commission (SEC), and The Stock Exchange of Thailand (SET) held a press conference regarding the adjustment on survey procedures and criteria on the “Corporate Governance Report of Thai Listed Companies” (CGR), aiming at raising listed companies’ corporate governance (CG) practices.
“To increase CGR roles in enhancing the quality of corporate governance and improving the survey for a more extensive and long-term use, we have adjusted the survey procedures for this year, before conducting the completed survey in 2010,” revealed IOD Chief Executive Director, Mr. Charnchai Charuvastr
CGR has been continually conducted for six times during 2001 to 2008. In addition to the increasing of the overall average scores each year, there are a certain amount of listed companies with CG practices that meet international standards in many aspects. Therefore, there should be a study on the ‘Best Practices’ of listed companies, whose scores were “excellent” (5 stars) in 2008 in order to promote such best practices guidelines for other listed firms.
“To better apply CG practices survey, the Steering Committee will review the evaluation criteria to cover major issues, particularly in the Role of Stakeholders, the Corporate Social Responsibility (CSR) will be used as a criterion. There will be seminars explaining the amendments of the survey criteria for listed companies at the end of this year before conducting the survey in 2010,” continued Mr. Charnchai.
To be in line with SEC and SET’s policies, this year, CGR will be conducted on the targeted group of listed companies, i.e., listed companies with at least five securities analysis reports duringMarch-May 2009, newly listed companies in 2007 that have not been surveyed in 2008, and interested listed companies having potential to improve their CG practices in a short period of time, including listed companies voluntarily join the survey,” added IOD's executive vice president for research and policy, Pornkanok Wipusanawan.
“CGR has been accepted by all relevant parties in the capital market. Some listed companies used the results of this survey as their goal to develop their CG practices. Meanwhile, investors pay more attention to the survey. The amendments on the criteria to keep pace with the development of CG practices will help support listed companies improve their CG practices. In addition, it will provide additional investment decision-making tool for analysts, investors and financial institutions, as well as business information for their partners, said SEC Senior Assistant Secretary-General Mr. Chalee Chantanayingyong.
“SET consistently supports CGR project since CGR is deemed important to the development of listed companies’ CG practices in encouraging transparency, prudence, concerns for stakeholders’ interest, including complete information disclosure to investors. It will result in firms’ strong competitiveness and enhancing CG practices of listed companies in Thai capital market to meet regional standards,” SET Executive Director, Industry Development, Capital Market Development Fund, Chaiyoot Chamnanlertkit.
“For future direction in supporting CGR, SET will cooperate with SEC in encouraging analysts to utilize CGR results in securities analysis reports, while institutional investors can use the results for their investment decision-making, said Mr. Chaiyoot.