The Securities and Exchange Commission (SEC) has ordered embattled Inter Far East Energy Corporation Plc (IFEC) to immediately hold a shareholders' meeting to proceed with selecting new directors and resume the company's operations.
The order comes after the Commerce Ministry's Business Development Department confirmed that IFEC has just three directors and that two others, Wiphu Maharakkhaka and Manusak Deawwanich, have not been approved by the department, the SEC said.
The three directors are chief executive Suphanan Rittiphairoj, Pol Col Boonlert Jengnopparath and Chatnarong Chatrabhuti.
"IFEC has only three directors, below the required amount according to the Public Limited Company Act of 1992," the SEC said in a release. "The remaining directors have a duty to hold a shareholders' meeting to select new directors for the vacant positions in accordance with Section 83 of the Act."
The SEC supports the notion of setting up a shareholders' meeting of IFEC as a means for the company to resume its business operations and alleviate the impact on the company's debtors and shareholders, said SEC assistant secretary-general Sirivipa Supantanet.
The market regulator has proceeded with an investigation on alleged wrongdoings committed by former and current IFEC directors.
Yaowaluck Ritsomjit, the leader of an investor group, said shareholders want the SEC, the Commerce Ministry and the Stock Exchange of Thailand to resolve the ongoing problem with stringent punishment for any IFEC director involved with delays in setting up a shareholders' meeting.
The crisis has stretched on for a year and six months, leading investors to take matters into their own hands despite having a market regulator in place, Ms Yaowaluck said.
Shareholders will proceed with filing a lawsuit against idle state agencies with the Office of the Ombudsman, she said, as damages incurred to 100,000 investors are valued at an estimated 10 billion baht.
As reported earlier, the appointments of Mr Wiphu and Mr Manusak as IFEC directors were rejected by the Business Development Department because they were appointed by former chairman and chief executive Wichai Thavornwattanayong.
Mr Wichai was accused by the SEC of failing to disclose information about the firm's default on bills of exchange.
He benefited from refraining to disclose related information because his IFEC shares, worth 57.46 million baht, were used as collateral for the company's margin trading and were not subject to forced sale.
Mr Wichai also used his status as an IFEC shareholder to exercise his voting rights during three shareholder meetings last year for his own benefit, in violation of the SEC Act of 1992, according to the SEC.
IFEC directors were scheduled to have a meeting on May 23, with an agenda to set up a shareholders' meeting and fill the vacant positions on the board of directors.
"[But] Mr Suphanan asked employees to close the office doors and turn off the lights when we went to the IFEC office on that day," Mr Chatnarong said. "We [eventually] moved to IFEC's subsidiary located in the same area to conduct a meeting, which we reported to the SEC."
Separately, the SEC has imposed a civil fine on seven individuals for share manipulation of Digital Tech Planet Plc, formerly known as Asset Bright Plc. The combined civil fine amount is 120 million baht.
It was found that shares of Asset Bright rose to 7.80 baht each from 2.38 baht between May 22 and June 30, 2014. Trading turnover also increased substantially to 600,000 shares a day from 300,000 recorded in early 2014.
