The Securities and Exchange Commission (SEC) has imposed a civil penalty on Suphanan Rittiphairoj, former chief executive of embattled Inter Far East Energy Corporation Plc (IFEC), on grounds of negligence of duty and dishonesty.
Based on information received from IFEC shareholders, Mr Suphanan obstructed the process of setting up a shareholders' meeting on May 23 to select new directors to fill vacant positions, the SEC said.
The move violated Section 83 of the Public Limited Company Act of 1992 and IFEC cannot resume its normal business operations as a result of Mr Suphanan's action, according to the SEC.
Mr Suphanan also delayed the process of selecting new IFEC directors by refusing to disclose the resolution of IFEC's board of directors meeting to the Stock Exchange of Thailand (SET), while IFEC management has refused to accept the nomination of new directors on qualification grounds.
The SEC said Mr Suphanan's actions have contributed to the problems IFEC has been facing, such as indebtedness, failure to submit financial statements and a possible de-listing from the SET.
Mr Suphanan was penalised with a civil fine of 750,000 baht and investigation costs of 110,042 baht. He is barred from being a director or an executive of a securities-issuing or listed company for 10 years.
Mr Suphanan was dismissed as IFEC chief executive by the SEC on Sept 5 on grounds of insider trading and refusal to acknowledge a civil sanction.
Earlier reports stated that Mr Suphanan consistently refused to set up a shareholders' meeting. His previous attempt to appoint two new directors failed because the individuals had not received the Commerce Ministry's endorsement, due to a lack of qualifications and an unclear appointment process.
Disputes between IFEC shareholders became public in late 2014. IFEC's stock has been flagged with a suspension symbol (SP) since December 2016.
Internal disputes and financial scandals have turned into a crisis for retail shareholders, as some members of IFEC's board have continued to block scheduling of a shareholders' meeting, leading investors to take matters into their own hands despite having market regulators in place.
The SEC recommended that IFEC shareholders exercise their rights under Section 100 of the Public Limited Company Act.
Section 100 states that the combined shares held by retail shareholders must reach 10% of total shares to set up a shareholders' meeting. Once this requirement has been fulfilled, the board of directors must arrange a meeting within 45 days.
