SET-listed CP All Plc has established a new committee to oversee its corporate governance following an insider trading scandal that embroiled three of its top executives.
All three executives will continue with their current responsibilities, the company said in a statement yesterday.
In a filing with the Stock Exchange of Thailand, CP All's board agreed to set up the new committee following a suggestion from its audit committee to enhance "its existing corporate governance and compliance".
It also appointed three directors for the new committee — Pol Gen Phatcharavat Wongsuwan and Padoong Techasarintr as independent directors and Umroong Sanphasitvong as director and executive director.
The move came after four executives were fined a combined 33.3 million baht for using inside information to purchase shares of Siam Makro Plc ahead of the 7-Eleven operator's announcement it would buy out the cash-and-carry giant at above-market value.
The executives were CP All executive chairman Korsak Chairasmisak, vice-chairman Piyawat Titasattavorakul and vice-chairman Pittaya Jearavisitkul along with Athueck Asvanund, a vice-chairman and group counsel of True Corporation.
The company's statement noted its board meeting yesterday had carefully considered the findings of the audit committee and independent director.
But the statement said while there was agreement the executives had acted with imprudence and limited understanding of Securities and Exchange Commission rules, there had been "no intention" to violate them.
They also insisted the executives’ previous track records and immediate compliance and settlement with the SEC had been taken into consideration.
Following CP All's announcement, Chavinda Hanratanakool, chief executive of Krungthai Asset Management Co, said institutional investors would discuss their next move at a meeting on Feb 18.
"We're not sure whether we'll see any moves before the listed companies' annual general shareholders' meetings, as most of these are scheduled for April, just a month and a half from now," she said.
Mrs Chavinda said the investment decision was dependent on each asset management company.
On Thursday, institutional investors threatened to call an extraordinary general meeting for CP All if the company's board refused to take appropriate action against the executives at its next meeting.
CPALL shares closed yesterday on the SET at 42.75 baht, up 25 satang, in heavy trade worth 1.77 billion baht.