The board of directors of embattled Inter Far East Energy Corporation Plc (IFEC) has sent letters to IFEC's six subsidiaries, aiming to set up a shareholder meeting within 30 days to make changes in the executive structure and authorised signatories.
The move is an attempt to block former IFEC chairman Wichai Thavornwathanayong and his entourage from controlling IFEC’s management via the company’s subsidiaries.
Mr Wichai was accused by the Securities and Exchange Commission (SEC) of failing to disclose information about the firm’s default on bills of exchange. He benefited from omitting to disclose related information because his IFEC shares, worth 57.46 million baht, were used as collateral for the company’s margin trading and were not subject to forced sale.
The SEC said Mr Wichai also used his status as an IFEC shareholder to exercise his voting rights during three shareholder meetings last year for his own benefit, in violation of the SEC Act of 1992.
Despite his removal at IFEC, Mr Wichai remains as a director of most IFEC subsidiaries and associated companies, which consist of about 45 entities.
The SEC has no authority to bar or dismiss people who violate the SEC Act from their positions in non-listed companies and subsidiaries.
If shareholders of non-listed firms want to change directors or those at the management level, they must complete the process via voting through the parent company’s board of directors.
IFEC director Boonlert Jangnopparat, who is the company’s acting chairman, said Mr Wichai should resign from all positions held in IFEC’s subsidiaries and associated companies because IFEC’s shareholder structure has already changed.
IFEC will set up a shareholder meeting to fill vacancies of seven directors and appoint a new chairman, Pol Col Boonlert said.
He said IFEC, as a major shareholder of the six subsidiaries, will exercise its right under the Public Limited Company Act of 1992 to order them to set up a shareholder meeting and make changes at the executive level.
Yaowaluck Ritsomjit, leader of the IFEC investors group, said Global One Asset Management, IFEC's major creditor, met with the company directors last week and agreed to support a decision ordering the six subsidiaries to convene a shareholder meeting under the Public Limited Company Act.
If Mr Wichai ignores the setting up of such a meeting, IFEC's board of directors could exercise its right in holding the meeting and change the boards of directors at these subsidiaries, Ms Yaowaluck said.