THE CREATION OF CORPORATE GOVERNANCE FOR COLLATERAL DEBENTURE IN THAILAND

Abstract

The objective of this article is to undertake an analysis of the ecosystem surrounding the issuance of secured bonds within the Thai financial market, with the explicit aim of advancing governance mechanisms conducive to their sound operation. This examination encompasses a scrutiny of the prevailing regulatory landscape governing transaction size determination and protocols for asset sales or disclosure of connected transactions. Notably, in instances where transaction magnitude warrants, compliance necessitates the provision of an independent financial advisor's report, coupled with shareholder endorsement. The study's findings underscore the imperative of nurturing the capital market to foster sustainable growth, thereby facilitating universal access and participation across all sectors. Consequently, it advocates for the Securities and Exchange Commission (SEC) to prioritize initiatives aimed at ensuring parity and safeguarding the interests of all investor demographics, with heightened attention to the protection of retail investors, particularly within the framework of asset acquisition or disposal regulations. Furthermore, the utilization of listed company assets as collateral for bonds emerges as a strategic avenue for fortifying the establishment of equitable governance mechanisms for secured bonds in Thailand. The studies of actual events serves to reinforce the practical relevance of our proposals and bolsters their potential implementation within the financial industry's regulatory framework.