The SEC is holding a pubic hearing on the code of conduct for the board members of listed companies and institutional investors to help improve corporate governance.
The public hearing will run through the end of this month, said assistant secretary-general Waratchya Srimachand.
The corporate governance code (CG Code) is a set of guidelines to help the boards of listed companies comply with corporate governance rules.
Public concerns regarding corporate governance issues reached a fever pitch after four CP All executives, including executive board chairman Korsak Chairasmisak, were fined by the SEC late last year. The executives had used insider information to purchase shares of cash-and-carry giant Siam Makro Plc ahead of the company's announcement that it would buy out Makro at above-market value.
Investment Governance Code (I Code), a voluntary code for institutional investors, is a guideline to help enhance stewardship responsibilities to safeguard funds and investors in the long run, said Mrs Waratchya.
The I Code will apply to asset management companies, asset owners and related service providers.
The code has seven principles, including a clearly written investment governance policy, conflicts of interest management, informed decision-making on the basis of business and environment, social and corporate governance performance, disclosure of voting policy and voting results, and regular disclosure of investment governance policy and compliance.
Earlier, the securities watchdog said the codes of conduct are expected to be implemented by the end of this year.
"Both codes of conducts are crucial to encouraging investors, the business sector, the economy and society to grow sustainably. For the business sector, being a listed company which delivers good earnings while also being aware of the mutual concerns of all parties will not only generate returns, but will also benefit investors and society, while fostering sustainable growth and development in line with Thailand 4.0," she said.
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