Why considered successful?

1
The 2006 Asian Roundtable on Corporate
Governance Implementation and Enforcement
Revisited Waratchya Srimachand Securities and
Exchange Commission, Thailand Session 1 Case
Studies on Implementation and Enforcement of
Rules Part 1 A case in Thailand Bangkok,
Thailand 14-15 September 2006 The views expressed
in this paper are those of the author and do not
necessarily represent the opinions of the OECD or
its Member countries or the World Bank
2
Why considered successful?

• Prolonged inflated share price with linkage to
  politician
• Reflection in financial statement
• Short enforcement time
• Reassure workability of existing system
• Auditors
• Regulator
• Law enforcement agencies
• Repercussion on trading of other shares and
  credibility of the suspects

3
Key Success Factors

• Auditor performed their role make comments on
  irregular transactions SEC monitoring scheme
• SECs review of financial statements
• Power to order for a special audit
• Power to share information with an auditor
• Cooperation from firm
• Task force working style at the investigation
  agency
• Commitment from the top

4
Remaining Issues

• Inflated selling price
• Reliance on criminal offense - burden of prove
  beyond reasonable doubt
• Damage from loan loss provision
• Sanction on present management
• Remedies for investors

5
Future Steps

• Law amendment for
• Sanctions for breach of fiduciary duties
• Administrative sanctions on management of listed
  firms
• Civil penalties
• Class action

6
PICNI 2003 2006
SP
7
Enforcement Timeline
Mar 30 Start investigation
Oct 25 Case filed to Court

• Jun 30
• Submission of Revised F/S
• filed criminal complaint

2005
Mar 1 Submission of 2004 F/S
May 11 Order for Special audit
Oct 12 DSI submittedto public prosecutor
Dec 20 First trial
Surveillance investigation 7 months