As the major shareholder of Thai Airways International (THAI), the Finance Ministry has confirmed all the new nominees for the company’s board of directors are professionals.
According to finance permanent secretary Lavaron Sangsnit, 17 individuals have been nominated as potential new directors of THAI, not including nominees from shareholders who hold at least 5% of shares, who are entitled to propose candidates for consideration by the selection committee.
The committee is expected to select 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 THAI’s board, which is scheduled to meet on Oct 23.
The board then proposes 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,” said Mr Lavaron.
In his capacity as chairman of the Thai Airways 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.
“The board members are true professionals who work for the genuine benefit of Thai Airways. Of course, during board meetings not everyone will agree on every issue, but all are professionals. What is discussed in the board room should not be disclosed outside,” said Mr Lavaron.
“As long as I remain chairman, there will be no corruption — everything must be transparent in every aspect.”
He 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,” said Mr Lavaron.
“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.”