The Securities and Exchange Commission (SEC) has filed a criminal complaint against the former chairman of SET-listed Inter Far East Energy Corporation Plc (IFEC) with the Royal Thai Police's Economic Crime Suppression Division for failure to disclose information on the company's bills of exchange (B/Es) default.
The market regulator also demanded IFEC's board of directors urgently resolve the problem and disclose information to the public by March 5.
Former IFEC chairman Wichai Thavornwattanayong has been accused by the SEC of failing to disclose information related to the company's B/E default, with Mr Wichai benefiting from refraining to disclose such information because his IFEC shares of 57.46 million 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, which violates the SEC Act of 1992, said the SEC.
The SEC's latest filing is an addition to its criminal complaint filed against Mr Wichai to the Economic Crime Suppression Division on Sept 5, 2017, for committing dishonest acts to gain an unfair advantage for himself or other persons.
Renewable power producer IFEC fell into financial hardship after rifts among major shareholders saw the company default on a series of B/E.
IFEC defaulted on its debt for the second time in less than a month in May last year after failing to pay 200 million baht in B/Es owed to Solaris Asset Management Co Ltd.
Earlier, IFEC defaulted on 100 million baht in B/Es owed to Land and Houses Fund Management, a subsidiary of LH Financial Group Plc, that were due in December 2016.
The debt defaults forced the Stock Exchange of Thailand to suspend trade of IFEC shares since Jan 12, until the company came up with a clarification on debt payment details, causing some shareholders to appeal to executives for solutions.
IFEC creditors have filed a court case against the company, resulting in the failure of the company to submit its financial statements to the SET and risking a possible de-listing.
IFEC still has no chairman to lawfully call for a board of directors meeting, and some directors still have legal complications regarding whether they can perform their duties as IFEC shareholders have used their rights to oppose the company's appointment of a new chairman through a court procedure, according to the SEC.
IFEC's board of directors should urgently resolve the ongoing problems, said the SEC. The resolution process should be disclosed to the SET by March 5.
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