The Securities and Exchange Commission (SEC) has demanded that two directors of International Engineering Plc (IEC) clarify their absence from board meetings to resolve ongoing business problems.
Such behaviour could be deemed to be negligence of duty, in violation of Section 89/7 of the Securities and Exchange Act, the SEC said in a release.
The two IEC directors were identified as Poorich Nanawaratorn and Wattana Petchmongkol.
The company's board meetings were scheduled on June 6, 17 and 22, with an agenda to resolve urgent matters such as appointing an auditor, determining the company's audit fee and solving financial liquidity problems so that IEC could submit its financial statements to the Stock Exchange of Thailand (SET) and prevent the company from de-listing from the bourse, said the securities watchdog.
But Mr Poorich and Lt Gen Wattana did not attend those meetings, resulting in failure to reach a quorum of at least five directors, in line with the Commerce Ministry's Business Development Department's mandate.
The SEC said it has determined the two directors did not attend the scheduled meetings, in which the market regulator had earlier sent a letter insisting that IEC directors do so to resolve prolonged issues.
Mr Poorich and Lt Gen Wattana have until July 12 to clarify their position to the SEC.
IEC has failed to submit its financial statements since the second quarter of 2016, prompting the SET to place a trading suspension order on the company's shares.
The bourse also warned that the company could be de-listed from the bourse as a result of failure to submit a series of financial statements.
In November, the SEC accused former IEC executives and their associates of collusion, asset misappropriation, seeking unlawful gains and filing incorrect financial statements to lure investors to purchase shares of the company's subsidiaries, along with construction contracts and machinery purchases.
Two executives from IEC have already been dismissed as a result of criminal charges brought by the SEC, as the Securities and Exchange Act of 1992 prohibits any person accused of a breach of trust to hold an executive position at a listed company.
