The corporate governance (CG) of Thailand's top 50 listed firms ranked No.1 when compared with their peers in four other Southeast Asian countries, says the Thai Institute of Directors (IOD).
Based on the criteria of the Organization for Economic Cooperation and Development (OECD) and the International Corporate Governance Network (ICGN), Thailand's CG scorecard was 67.66%, compared to 62.29% for Malaysia, 56% for Singapore, 48.9% in the Philippines, and 43.4% for Indonesia, said IOD executive vice-president Rongruja Saicheua.
Thai firms scored the highest on equitable treatment of shareholders at 97%, shareholder rights at 86% and disclosure and transparency at 70%. The role of stakeholders only tallied 51% while board responsibilities scored 56%.
"Most Thai listed firms allow their shareholders to elect directors individually and disclose the outcomes and voting results," the report said, noting most Thai firms also issue the notice of a shareholders' meeting with full details without bundling several items into the same agenda.
However, Thai firms could improve on the role of stakeholders and board responsibilities, meaning they should be more inclusive of issues such as corporate social responsibility, the environment, clients and staff, added the report.
Thai firms fall short in disclosure of practices related to the health, safety and welfare of employees, as well as staff training and development programmes.
She added disclosure of information should also be done in English and updates should be accessible via the internet. Consistency on CG disclosure standards is also recommended.
Vorapol Socatiyanurak, secretary-general of the Securities and Exchange Commission, said the scorecard will encourage global investors to complete their due diligence on Thai firms if they are looking for business opportunities, as the scorecard is like an investor "guidebook".
He said Vietnam is also preparing to enter the scorecard ranking.
Mr Vorapol expressed hope that Thai firms would maintain their high CG standards and increase the ratio of independent committees on boards of directors to 50% from one-third at present.