Following a referral from the Stock Exchange of Thailand (SET) and the SEC’s further investigation, it was found that on 2 August 2019, PPPM disclosed through the SET’s Electronic Listed Company Information Transmission System (SETLink) that it would not default on the repayment of its second series of bonds totaling 319.50 million baht, which was due for redemption on 2 August 2019, and that the company would repay both principal and interest by 7 August 2019. However, at that time, PPPM did not have sufficient liquidity to repay the bond debt as disclosed via SETLink. This information disseminated by PPPM may therefore have caused the public and investors to misunderstand material aspects of PPPM’s information, which was likely to affect the price of PPPM securities or investors’ investment decisions in PPPM.

At the time of the incident, General Chaowarit served as Vice Chaiman and Chief Executive Officer, Mr. Praween served as Managing Director, Miss Phatcharada served as Director and Executive Director, and Mrs. Kanokwan served as Director and Executive Director. All four offenders were aware that PPPM did not have sufficient liquidity to repay the bond debt and were involved in the action that led to the disclosure of such misleading information by PPPM.

PPPM’s action constituted a violation of Section 240 of the Securities and Exchange Act B.E. 2535 (1992), subject to the penalties under Paragraph 1 of Section 296 and Section 296/2 of the same Act. In this regard, General Chaowarit, Mr. Praween, Miss Phatcharada and Mrs. Kanokwan – as persons responsible for the operations of a juristic person – ordered or acted, or failed to order or failed to act, in accordance with their duties, causing PPPM to commit the offense in this case. As a result, they are subject to the same penalties under Section 300, in conjunction with Section 240, of the Securities and Exchange Act.

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions* on all five offenders. They are required to pay civil penalties and reimbursement of the investigative expenses incurred by the SEC, totaling 1,030,662 baht each. In this regard, General Chaowarit, Mr. Praween, Miss Phatcharada and Mrs. Kanokwan are jointly liable as joint debtors under Paragraph 2 of Section 317/11 of the Securities and Exchange Act, for the civil sanctions imposed on PPPM. In addition, the CSC resolved to bar General Chaowarit, Mr. Praween, Miss Phatcharada and Mrs. Kanokwan from serving as directors or executives of securities issuing companies or securities companies for a period of 20 months each.  

The barring periods from serving as directors or executives of securities issuing companies or securities companies above will take effect on the dates the offenders sign letters of consent agreeing to comply with the civil sanctions imposed by the CSC. If the offenders refuse to extinguish the case, the SEC will request the public prosecutor to file a lawsuit in the Civil Court seeking the maximum applicable civil sanctions, which must not be lower than those specified by the CSC.   

Civil penalties shall be remitted to the Ministry of Finance as public revenue.      

Notes: z

* Section 317/1 of the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016), allows for civil sanctions to be imposed for criminal offenses under this Act.   

Details of civil sanctions and associated procedures are available  at https://www.sec.or.th/EN/pages/lawandregulations/civilpenalty.aspx