The proposed changes include (1) the further clarification of the term, related party, (2) the adjustment of the calculation methods and the transaction size-based execution to simplify the overall procedure, (3) the clearer determination of the roles and responsibilities of company boards of directors and financial advisors to better respond to real practice, and (4) the revision to the criteria for reporting conflicts of interest of company directors.
In addition, the proposal covers laying out of good practice guidelines for executing related party transactions between subsidiaries and their related party, and recurring transactions.
SEC Deputy Secretary-General Chalee Chantanayingyong said: "The current rules on listed companies' transactions have been in use since 2003 while the market landscape and the business operation have generally become more diversified and more complex. This proposed amendment would fine-tune the governing rules and prevent unnecessary burdens on listed companies without compromising proper protection for shareholders."
The consultation paper is available at www.sec.or.th. Stakeholders and interested parties are welcome to submit comments through the website, or facsimile at 0-2263-9999 or email: [email protected].
The public hearing ends on February 3, 2016.