New NBTC ruling on feud 

New NBTC ruling on feud 

News Network's stake issue in NMG revisited

Stormy scenes at the NMG meeting yesterday as some shareholders try to get into the meeting room but are blocked by security guards employed by management, prompting police to step in to prevent further confrontations. THANARAK KHUNTON
Stormy scenes at the NMG meeting yesterday as some shareholders try to get into the meeting room but are blocked by security guards employed by management, prompting police to step in to prevent further confrontations. THANARAK KHUNTON

The National Broadcasting and Telecommunications Commission (NBTC) will give a new ruling on the dispute between SET-listed Nation Multimedia Group Plc (NMG) and MAI-listed News Network Corporation Plc on May 22.

The move comes after the NBTC's legal subcommittee said the ruling must be empowered by the NBTC board, not its broadcasting committee, according to Section 27 (17) of the Frequency Allocation Act.

Therefore, the previous ruling by the broadcasting panel was invalid.

In late March, the panel voted that the purchase of a 12.27% stake in NMG by News Network, formerly known as Solution Corner (1998), did not violate digital TV-related rules.

NBTC secretary-general Takorn Tantasith said it would propose the issue to its board to consider on May 22.

After chaos at NMG's annual general meeting (AGM) on Wednesday, the Stock Exchange of Thailand (SET) wrote a letter to NMG asking it to clarify why it blocked a group of shareholders including News Network from attending the meeting. NMG has to respond by next Thursday.

The SET statement said the banning of some shareholders and the voting obstruction could reflect that NMG had no good corporate governance because voting is a principal right of shareholders.

A public company has a duty to hold an AGM and each shareholder has an equal right to attend and vote, so their rights must not be infringed by others, it said.

News Network said it would file civil and criminal lawsuits against NMG executives led by former chairman Suthichai Yoon about its banning from the AGM.

As of Tuesday, News Network held a 12.21% stake in NMG, making it the largest shareholder, while Mr Suthichai had a 10% stake.

The dispute between News Network and NMG executives flared up late last year. NMG accused Chai Bunnag, a former shareholder of News Network, of being the man behind the acquisition.

NMG has two digital TV channels, Nation TV and Now 26, while News Network runs the Spring News channel.

The Thai Investors Association (TIA) has called on both sides to end their conflict as soon as possible to prevent the violation of shareholder rights.

It hopes the Thai capital market will not have such a case again.

Executives of listed companies should have good governance to resolve conflicts publicly and equally, the TIA said.

Mr Suthichai yesterday spoke to NMG staff about the group's next move.

NMG shares closed yesterday on the SET at 1.85 baht, down six satang, in trade worth 15.6 million baht.

NEWS closed on the MAI at 40 satang, down one satang, in trade worth 1.96 million baht.

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