Prachai seeks review of directive on board dismissal

02-Sep-05

Prachai Leophairatana has sought a review of the directive that has disqualified him from sitting on the boards of three listed companies, and has has filed a petition with securities regulators for the same. He has stated that under the constitution, the regulators cannot enforce the rules retroactively to punish him. He has also called for the ruling to be suspended until the consideration of the petition has been completed. He ahs also warned that if the SEC insisted on the order, he would file suit with the Administrative Court seeking to repeal it. He has expressed in the petition that he has no management mandate in the three companies because they had been under the rehabilitation plans ordered by the Central Bankruptcy Court. They had not even been allowed to make major changes including those in the boards of directors without a court order. Last month, the Securities and Exchange Commission (SEC) accused Mr Prachai of violating securities laws and forced him to step down as director of Thai Petrochemical Industry (TPI), TPI Polene and Bangkok Union Insurance or the three companies might face delisting