Tuesday, August 01, 2006
Thailand's New Corporate Governance Principles
The Stock Exchange of Thailand issued Principles of Good Corporate Governance for Listed Companies recently. The 2006 update by the Stock Exchange of Thailand (SET) was intended to make the principles comparable to those recommended by the OECD and the World Bank. The document is organized as a series of statements of principles, followed by a listing of best practices to implement those principles.
Like many other countries, Thailand has adopted a principles-based rather than a rules-based approach to governance. Companies are not required to comply with the principles, but they must explain deviations from those principles.