Bangkok: The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) have jointly launched '6 Thai Director Knowledge Standards' with the goal of enhancing corporate governance in listed companies, thereby building confidence among shareholders and investors while promoting organizations that offer relevant training courses.
According to Thai News Agency, Ms. Pornanong Busaratrakul, Secretary-General of the SEC, emphasized the organization's dedication to promoting and enhancing good governance among listed companies. Recognizing that boards of directors and senior executives are crucial to an organization's success, the SEC has collaborated with the SET to develop these knowledge standards. These standards aim to strengthen directors' understanding of their roles and responsibilities, enabling them to perform their duties effectively. The SEC also encourages listed companies to implement internal systems that support good corporate governance principles, which will enhance transparency and credibility, thereby fostering confidence among shareholders and stakeholders and contributing to the stable growth of businesses, society, and the capital market.
Mr. Asadej Kongsiri, President of the Stock Exchange of Thailand, remarked on the SET's commitment to promoting sustainable business operations, noting that corporate governance is essential for meeting the expectations of all stakeholders. Although issues such as corruption and negligence by boards of directors are limited to a small percentage of listed companies, they can significantly impact confidence in the capital market. Therefore, the SET is dedicated to developing tools to enhance governance efficiency and support the ongoing development of a sound governance system.
The SEC and SET's established knowledge standards provide a foundation for professional director performance, covering key areas such as the role and effective performance of the board, legal responsibilities, accounting and finance oversight, strategic risk management, driving business sustainability, and reporting and disclosure.
The objectives of these knowledge standards are twofold: to ensure directors acquire comprehensive and current knowledge aligned with good corporate governance principles and to guide training organizations in developing curricula that meet these standards. This initiative aims to maximize directors' potential and effectiveness in their roles.
Moreover, directors are encouraged to develop additional skills, including understanding their organization's business, information security, artificial intelligence governance, and crisis management. Several domestic institutes, such as the Thai Institute of Directors Association, along with other organizations like the Federation of Accounting Professions and the Thailand Management Association, have developed curricula in line with these standards to further professionalize directors.