Corporate Governance Country Assessment : Thailand
Since 1998, significant corporate governance reforms have been introduced and are underway, including reforms in the structure and function of the board of directors of listed companies, the establishment of the Thai Institute of Directors Association and the Department of Special Investigation, the...
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| Format: | Corporate Governance Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/06/10038431/thailand-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/8275 |
| Summary: | Since 1998, significant corporate governance reforms have been introduced and are underway, including reforms in the structure and function of the board of directors of listed companies, the establishment of the Thai Institute of Directors Association and the Department of Special Investigation, the adoption by the Stock Exchange of Thailand (SET) of 15 principles of good corporate governance, and draft legislation to reinforce the rights of minority shareholders. In addition, the Securities and Exchange Commission (SEC) has improved its monitoring of financial statements of listed companies and stepped up enforcement efforts and increased sanctions for violations. Most recently, the SEC has supported issuance of a Directors' handbook and the establishment of a Director Registry System. The Institute of Certified Accountants and Auditor of Thailand (ICAAT) also has intensified its efforts to improve skills and knowledge of accountants and auditors. Reforms in the legal framework have been slow and need to be expedited. There is a lack of a range of sanctions, criminal, civil, and administrative to facilitate effective enforcement. International financial reporting standards have yet to be adopted. The private sector's awareness of the potential benefits of improved corporate governance may need to be further enhanced. Further steps need to be taken to enhance protection of shareholder rights, including the introduction of cost effective legal channels for shareholders seeking redress. The focus should remain on implementation and on completing the legislative and regulatory agenda, improving enforcement (prosecution process), enhancing financial reporting and disclosure consistent with international standards, and promoting business ethics and best practices. |
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