The Stock Exchange of Thailand (SET) has demanded that Polaris Capital Plc clarify by tomorrow that the company is under receivership by a court order and explain other inconsistent information declared previously.
"The company has a duty to disclose information immediately when the company engages in a significant legal dispute or in any case which affects, or will affect, interests of the shareholders, including the progress and procedure of each event after the [Central Bankruptcy] Court has an order of receivership," the SET said in a release.
"Non-disclosure of significant information may be considered as the Board of Directors and management having intentions to violate the SET's regulations."
Earlier, Polaris had informed the bourse that in May it filed a business rehabilitation petition but had withdrawn it later. However, it came to light that the company is under receivership by the order of the court, which significantly affects its shareholders' rights.
On Aug 10, Polaris had clarified information to the SET on how the company was under receivership by a court order and why Khamhaeng Hunhiransai, a plaintiff, sued the company in a bankruptcy case by taking the share purchase agreement between the company and him to file against Polaris Capital until the court issued the order of receivership.
The SET also asked Polaris to clarify how its board of directors on Nov 18, 2016 had a resolution to sell all shares of Platinum Auto Service Co Ltd to Mr Khamhaeng for 105 million baht, but it was revealed that Mr Khamhaeng was no longer interested in purchasing those shares and sued Polaris Capital for debt and damages occurred from a sale cancellation for 345 million baht, together with filing the company for bankruptcy.
In the best interest of the company and its shareholders after the court's receivership order, the SET has also inquired as to how the company's board of directors will appeal to the court or ask for composition before going bankrupt or performing both options in parallel.
The bourse also sought clarification on why the board of directors has a resolution to withdraw the business rehabilitation petition while Polaris Capital was sued by Mr Khamhaeng until the court has an order of receivership.
SET executive vice-president Paveena Sriphothong said the receivership order is one of the reasons for the company's withdrawal of its business rehabilitation petition, but the withdrawal move is deemed as the end result, and tracking back previous developments is of paramount importance in assessing whether the company has concealed or falsified its declared information.
"The [market] regulators will probably implement a measure soon to deal with companies whose executives perform dishonestly, including the Polaris Capital case on which the SET awaits further clarification," Ms Paveena said.
The SET has also inquired and postulated on this case as an attempt for investors to ponder and consider their investments, she said.
Polaris shares have been suspended from trading since March 1 for failure to submit financial statements and provide explanations concerning the company' investments, including the purchase of land on Pahon Yothin Road and the cancellation of an investment in Day Poet Co Ltd, the publisher of A Day and Hamburger magazines.
