Bangkok, February 29, 2016 ? The SEC has laid out a guideline for listed companies to simplify their proof of identity requirements imposed on shareholders or their proxies at the annual general shareholders? meeting (AGM) to lessen company costs and shareholders? burdens, especially foreign shareholders. 

Senior Assistant Secretary-General Waratchya Srimachand said: ?So far, we have found that each listed company requires different identification documents from the shareholders at the AGM, especially those who are foreign juristic persons. For example, some companies may require a certificate from a state agency or set a short validation period for such ID documents. This may cause some shareholders or their proxies to be rejected from the AGM and may as well impose high costs on foreign shareholders, compared to those in other markets.?

Essentially, the SEC advises that listed companies summon only necessary ID documents to lessen shareholders? burdens. For example, in case of foreign juristic persons whose proxy is their custodian that is a local financial institution, listed companies may bypass request for additional ID documents because the custodians must already have examined their clients? ID documents and conducted client due  diligence in accordance with the law on money laundering suppression and other relevant laws. In cases where shareholders? representatives or proxies are other types of juristic persons, listed companies may use their discretion in summoning ID documents, as deemed necessary. In any case, a valid period of such ducuments should at least be in a range of six months or one year.

Although requesting ID documents from Thai shareholders have rarely been an issue, some listed companies have insisted that their proxies present the original ID documents. The new guideline, however, requires only a certified photocopy of a valid original photo ID issued by a governmental agency such as the ID card or passport.  

The SEC has also advised that listed companies reconsider their giveaways policy at AGM as such gift distribution to shareholders or their proxies is unnecessary and redundant as far as the overall industry is concerned.

?Improving the proof of identity process will make it easier and more cost-effective for shareholders to have their say in the company?s decision-making with regard to business operation and relevant issues. We wish to see listed companies adapt these ID document requirements to other matters such as exercise of right offering or share warrants,? she added.