InfoQuest: SEC Imposes Fines on Businesses, Bans 5 PPPM Executives from Board for 20 Months

The Securities and Exchange Commission (SEC) applies civil sanctions against 5 offenders, namely:

1. PP Prime Plc. (PPPM)

2. Gen. Chaowarit Praphachit (Gen. Chaowarit)

3. Mr. Praween Dikajorndej (Mr. Praween)

4. Ms. Patcharada Juthaprateep (Miss Patcharada)

5. Mrs. Kanokwan Wannabut (Mrs. Kanokwan)

In the case of disseminating a message that may cause material misunderstanding regarding PPPM’s information by requiring the offender to pay a civil penalty of 5,153,310 baht and specifying a period of prohibition for the 4 offenders from being directors or executives

The SEC receives information from the Stock Exchange of Thailand. And further investigation found that on August 2, 2019, PPPM has disclosed information through the SET information system that it will not default on the repayment of debentures No. 2 in the amount of 319.50 million baht, which are due for redemption on August 2, 2019. And the company will pay both principal and interest within August 7, 2019.

Although at that time PPPM did not have sufficient liquidity to pay off the debentures as disclosed in the information memorandum. The message published by PPPM may lead the public and investors to materially misunderstand PPPM’s information that is likely to affect the price or investment decision in PPPM.

However, at the time of the incident Gen. Chaowarit served as Vice Chairman and Chairman of Executive Committee. Mr. Praween holds the position of Executive Director. Ms. Phatcharada is a director of the company and an executive director. and Mrs. Kanokwan serves as a director and executive director. All 4 persons are aware of the fact that PPPM does not have sufficient liquidity to repay the said amount of debentures. Including participating in the actions leading to the disclosure of such PPPM information.

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PPPM’s action is a violation of Section 240 of the Securities and Exchange Act B.E. 2535 (1992) (Securities Act), which has penalties under the first paragraph of Section 296 and Section 296/2 of the same Act. by Gen. Chaowarit, Mr. Praween, Ms. Patcharada and Mrs. Kanokwan as a person responsible for the operation of a juristic person command or act or not ordering or not acting, which is a duty to be performed, causing the PPPM to commit the offense in the above cases, liable to the same penalty under Section 300 in conjunction with Section 240 of the Securities and Exchange Act.

The Committee on Civil Sanctions (MSPA) resolved to bring civil sanctions into force. with all 5 offenders by allowing all 5 offenders to pay civil fines and reimburse expenses due to the investigation of the offenses totaling 1,030,662 baht each, with Gen. Chaowarit, Mr. Praween, Ms. Phatcharada and Mrs. Kanokwan jointly liable for civil sanction measures taken against PPPM as joint debtors under Section 317/11, paragraph two of the Securities Act. Mr. Praween, Ms. Patcharada and Mrs. Kanokwan Being a director or executive in a securities issuing company or a securities company for 20 months each

The period of prohibition from being a director or executive as mentioned above shall take effect from the date on which the offender signs a memorandum of consent to comply with civil sanctions imposed by the MSPC if the offender does not consent. A. The SEC will issue a letter requesting the public prosecutor to file a lawsuit with the Civil Court in order to determine the maximum civil sanctions imposed by the law, not lower than the rate specified by the SEC.

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However, the civil fine is the government’s revenue remitted to the Ministry of Finance. As for the reimbursement for expenses due to the investigation of wrongdoing, it shall be paid to the SEC Office.

By InfoQuest News Agency (17 Mar. ’23)


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