A group affiliated with Thavich Taychanavakul, a shareholder of SET-listed Inter Far East Energy Corporation Plc (IFEC), has taken control over the company's business operations after shareholders voted yesterday to appoint seven new directors.
Of the 940 shareholders attending IFEC's extraordinary general shareholders meeting, 888 shareholders voted to appoint seven new directors, with 52 voting in absentia.
IFEC's shareholders totalled around 29,986 as of Nov 23. Mr Thavich is the company's major shareholder with 202,616,800 shares or 10.03% of total shares, followed by Apisak Theppadungporn at 87,882,095 shares or 4.35%, and Pinyo Rukphanmethee at 53,561,766 shares or 2.65%.
There were 18 candidates vying to be selected as IFEC's new directors. Seven contestants came from Mr Thavich's group, another seven were associated with the Theppadungporn group and four persons were connected with former IFEC chairman Wichai Thavornwattanayong.
All seven new directors are affiliated with Mr Thavich -- Pichit Sinpattanasakul, Han Chiewcharn, Gudan Sukumanont, Thavich Taychanavakul, Boonlert Leawpornchai, Pranom Kowinwiwat and Pol Gen Sampao Chusri.
Mr Thavich said he initially invested in IFEC through a bill of exchange two years ago and became a major shareholder through a debt-to-equity share conversion and additional share purchases.
Mr Thavich has never been in control of IFEC, nor managed the company's business operations.
Following the shareholder vote, Mr Thavich plans to notify the Commerce Ministry's Business Development Department for official recognition, which the department will provide within 15 days.
Upon receiving the department's approval, IFEC will appoint an accounting firm to conduct special audits on the company's annual financial statements for 2016-18, including IFEC's 45 subsidiaries, said Mr Thavich.
The suspension of trade for IFEC's shares posted by the Stock Exchange of Thailand is expected to be removed one year from now after the auditing process is completed, he said. IFEC's stock has had the suspension symbol since December 2016.
"We cannot tell what the outcome will be as we have to wait until the auditing process is finished. We will be able to determine the company's good and bad assets by then," said Mr Thavich.
There are a few approaches for IFEC's business recovery, including downsizing operations, selling assets or joining hands with a business partner, he said.
Disputes among IFEC shareholders became public in late 2014.
Internal disputes and financial scandals have escalated into a crisis for retail shareholders, as some members of IFEC's board have continued to block scheduling a shareholders' meeting, leading investors to take matters into their own hands despite having market regulators in place.
The Securities and Exchange Commission recommend IFEC shareholders exercise their rights under Section 100 of the Public Limited Company Act, which states if retail shareholders holding 10% of total shares want to set up a shareholders' meeting, the board must arrange a meeting within 45 days.