Nine people, including the founder and chairman of Thai Union, faced civil penalties from the Thai Security and Trading Commission after an investigation found they had engaged in misdemeanors insiders on the shares of the company.
Thai Union, based in Bangkok, Thailand, was founded by Kraisorn Chansiri in 1977 and has grown to become one of the largest seafood companies in the world, with a net profit of $4.2 billion (3, 8 billion euros) and 200 million dollars (181.2 million euros) in 2020. Its shares are listed on the Stock Exchange of Thailand.
An SEC investigation found that the insider trading took place between October and November 2017, before the release of Thai Union’s third quarter 2017 performance, which showed a significant increase in profits. According to the SEC, Kraisorn Chansiri, the chief executive of Thai Union, Chuan Tangchansiri, and Chan Hon Kit, the chief executive of Thai Union’s subsidiary, Songkla Canning, obtained notice of a profit increase and bought shares of Thai Union hoping for a positive performance. would increase the company’s share price. Additionally, they passed the inside information to family members who also purchased shares of Thai Union.
The SEC fined Kraisorn Chansiri 3.4 million THB (101,600 USD, 92,000 EUR), ordered him to reimburse the SEC’s expenses for the investigation and barred him from performing the duties of director or officer of any listed company in Thailand for 14 months.
Chuan Tangchansiri was fined THB 1.7 million (USD 50,800, EUR 46,000) and banned from serving as executive director for 14 months, and Chan Hon Kit is to pay THB 2.4 million (71,700 USD, 65,000 EUR) and risks a 12-month sentence disqualification from serving as an officer or director of a listed company or an affiliated company. The family members involved, including Kraisorn Chansiri’s son, Disphol Chansiri, were fined between THB 550,000 and THB 2.1 million (USD 16,400, EUR 15,000 and USD 62,800, EUR 56,800 ) and risk being banned from serving as a director or officer for nine to 12 months. .
In a press release signed by Kraisorn Chansiri’s son and current chairman and CEO of Thai Union, Thiraphon Chansiri, the company acknowledged the sanctions but said the decision should not impact operations. of the society.
“While the Office of Securities and Exchange Commission has published the press release regarding the imposition of civil penalties for insider trading in TU shares on its website today, Thai Union Group Public Company Limited would like to inform that the company has acknowledged the SEC’s announcement and dealt with further investigation to ensure that the company complies with all relevant laws and regulations, including the principle of corporate governance,” it said. he writes. “Nevertheless, this matter will not affect the business operation of the company and the company shall [provide an] update once there is more information.
Photo courtesy of Thai Union