Thaifoods Group CEO Winai Teawsomboonkij has resigned after being fined for insider trading.
His resignation takes effect retroactively from 26 December.
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According to a statement by the meat processor, issued yesterday (8 January), Teawsomboonkij has not carried out any duties nor taken part in operations and decision-making since that date.
In December, the Thai Securities and Exchange Commission (SEC) imposed civil penalties on Teawsomboonkit and five others for the use of inside information to buy the company’s shares.
The SEC fine followed an investigation initiated after a referral from the Stock Exchange of Thailand (SET) in November 2016.
Based on its findings, the SEC said there were “reasonable grounds” to believe the individuals was involved in insider trading between March and August 2016.
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By GlobalDataThe regulator concluded the individuals bought the company’s shares and warrants using non-public information regarding its first and second quarter 2016 operating results, which showed “significant” growth.
Teawsomboonkit was ordered to pay a fine of Bt1.12bn baht ($35.6m).
In its filing yesterday, ThaiFoods said COO Phet Nantavisai and CFO Siriluck Tangwiboonpanich are managing the company’s affairs alongside the board of directors.
The company is in the process of identifying and appointing replacements for the vacant roles.
Thaifoods also said it is “committed to achieving its strategic objectives”.
Teawsomboonkij founded the business in 1987 with a single chicken farm in Lopburi province, Thailand.
The company was formally incorporated as Thai Food (2001) Co., Ltd. in 2001, then restructured as Thai Foods Group Public Company Limited in 2014 before listing on the Stock Exchange of Thailand in 2015.
Thaifoods is a vertically integrated food producer focused on chicken and swine, with operations in Thailand and Vietnam.
