The Ministry of Finance insists all of the new nominees for the board of directors of Thai Airways International are professionals.
According to Lavaron Sangsnit, the ministry’s permanent secretary, 17 people have been nominated as potential new directors of THAI, not including nominees from shareholders who hold at least 5%, who are entitled to propose candidates for consideration by the selection committee.
The selection committee is expected to choose eight qualified candidates by Oct 19: four to replace directors whose terms have ended, and four new ones. These names are to be submitted for approval by the THAI board, which is scheduled to meet on Oct 23.
The board will then propose the list to the shareholders’ meeting for final approval, slated for December.
‘Thai Airways must have a professional board of directors, and we affirm that all the nominees we have proposed are top-tier and highly professional,’ Mr Lavaron said on Friday.
In his capacity as chairman of the board, he said he guarantees all processes are conducted with transparency, and there is no intention to return the airline to a state enterprise, nor will it be managed as one, but rather as a listed company.
Shares of Thai Airways resumed trading on the Stock Exchange of Thailand in August after a four-year business rehabilitation period. The Ministry of Finance is still the major shareholder, with 38.9% of the company’s shares, down from 47.9% in December 2024, according to SET records.
THAI lost its state enterprise status during the rehabilitation period when the total shareholding of the ministry and other state entities fell below 51%. The change was sought by creditors and shareholders as a way to reduce the bureaucratic inefficiency and political interference that used to plague the carrier.
Banyong Pongpanich, a former THAI board member, recently called on the government to sell all its shares in the airline, arguing that it would be the best way to ensure business efficiency.
Mr Lavaron maintains that the current board is working in the best interests of the business, its shareholders and customers.
‘The board members are true professionals who work for the genuine benefit of Thai Airways,’ he said. ‘Of course, during board meetings not everyone will agree on every issue, but all are professionals. What is discussed in the boardroom should not be disclosed outside.
‘As long as I remain chairman, there will be no corruption – everything must be transparent in every aspect.’
Bigger board
Mr Lavaron also explained the necessity of increasing the number of board members to 15.
‘There are 11 directors, which creates some operational limitations. Certain committees cannot be established because the board is incomplete. For example, the risk management committee is essential, but it cannot be formed at present,’ he said.
‘Only two committees exist: audit as well as nomination and remuneration, as required by the stock exchange regulations.
‘Under Thai Airways’ rules, all audit committee members must be independent directors. As three independent directors already serve on the audit committee, they cannot serve on any other, reducing the total by three. Another three are assigned to the nomination committee, making six in total that are ineligible for other committees.
‘The chairman should not serve on any committee, leaving seven. This leaves only four directors available, which makes it impossible to form the risk management committee. This is why it’s necessary to increase the number of board members to 15.’