Corporate Governance Policy

1. Introduction
          Krungthai Asset Management (public limited company) or KTAM was founded on 7 October 1996. Currently, the company has a fully paid registered capital of 200 million baht. It is the only state-controlled securities firm in Thailand with Krungthai Bank (public limited company) holding 99.99% of the shares. The company is also licensed by the Ministry of Finance to manage various types of assets including mutual and personal funds. KTAM offers asset management services to individuals, institutions, organizations and state enterprises. In asset management, the company is fully aware that credibility, honesty, transparency, fairness and accountability are of utmost importance to its business. As seen from its past activities, KTAM has had support of clients, investors and other stakeholders. Because of this, the company has been enjoying continued successes.

          The company’s board of directors sees the importance of this and as a result, set up a corporate governance policy and guideline to ensure transparency leading to the creation of corporate governance culture within the company.

          These corporate governance policy and guideline are a demonstration of the company’s mission. Since the past, the company has been practicing the governance principals and guideline which responsible for the successes the company has been enjoying up to these days
2. Corporate Governance Principals
          The meaning of corporate or good governance is a formation of management structure and strategy by setting up roles, rules and procedures aimed to benefit the business and raise the management standard. This is to reinforce the credibility, both domestically and internationally and bring a true achievement to every level of the organization, from the shareholders, the board of directors, the executives to the employees.  There is also a guideline on how each staff member can spread and practice the corporate governance principals with each other and through the relations with investors, clients and other stakeholders as the followings:

7 corporate governance principals consisted of

  • 1   Demonstrate strategy and capability in adding value in a long run, without risking short term exploitation, such as by setting up the company’s vision and strategic intent suitable with own capability in achieving value-adding activities, raising efficiency and ensuring operational effectiveness, as well as equally ensuring satisfaction among shareholders, clients and investors, without risking loss or increasing any short term cost which could damage or lower the business’s quality and value.
  •   Demonstrate accountability at the board of directors and executives level. Operate with honesty and fairness to the shareholders and the investors, both large and small. Ensure company’s growth, stability and sound returns for the shareholders and the investors. Reporting the company’s status and operational results to the shareholders and the investors, equally, regularly, completely and truthfully.

  • At the staff level, provide appropriate compensations according to one’s knowledge, skills, responsibilities and performance, as well as rewarding and penalizing employees equally and impartially. Give importance to the development of employees through knowledge and skill transfers with opportunity given to all equally and regularly.

  • At the clients/investors level, to act in accordance to contracts, agreement and conditions made with the clients/investors. Determined to ensure clients’ confidence and satisfaction with quality services and prompt responses along with disclosing information regarding the fund trades comprehensively without distorting facts. The clients are also entitled to file complaints via multiple channels such as the company’s website, the marketing and customer service staffs, the overseeing agencies or Security and Trade Commission.
  • 3   Possess understanding and competence to carry out assigned duties and responsibility effectively.

  • At the board of directors level, set up a policy according to the situation within the industry standard and the board must fully perform its given duties. Systematically evaluate the management and review the company’s business plan in accordance to the actual situations as well as reexamining the strategies and important policies including key performance indicators- KPIs on the company’s various operations.

  • At the executive level, specify strategic action plans to carry out business in accordance to the actual capability. Comprehensive risk management under internal control and monitor operation to ensure quality and avoid damage as well as building confidence which will in turn lead to a sustainable growth.

  • At the staff level, must possess understanding and competence to carry out assigned duties and responsibility including to fully being engaged and attentive to the jobs at hand. Seek additional education and understanding the company’s and self’s visions and goals as well as cooperating with all of those involved in accordance to the corporate governance principles.
  • 4   Promotion of best practices including creating culture, code of ethics and business conduct and integrity in carrying out tasks to add value to self, the company, the board of directors, the management and the employees at all levels. Act prudently and appropriately to avoid conflict of interest. Refrained from wrongdoings and adhere to honesty. Promote and strive for operational excellence by specifying a clear policy in order to attain the company’s business goals along with encouraging and supporting employees to continually develop themselves and support each other and the stakeholders such as the shareholders, the clients, the investors, the executive and the employees.
  • 5    Equitable treatment of the stakeholders. For instance, the shareholders, the clients and the investors must not exploit each other while all are subjected to equal access to information. In addition, the stakeholders such as the employees, the partners, the competitors must be informed of their rights and protection as well as be well treated.
  • 6    Demonstrate operational transparency. Able to answer inquiries and held accountable through mechanisms such as a clear decision-making process and transparent working procedures disclosable through reports and analyses on operating results and plans to the shareholders, the clients, the investors and other stakeholders equally, adequately and promptly. A public relations officer must be appointed to present information and able to facilitate communication. At the level of the board of directors, all committees must be balanced in their opinions and monitor the operation, be controlled in giving cautious advices to ensure smooth business and sustainability.
  • 7    Have social and environmental awareness, which is a part of stakeholder management, to reduce or eliminate unwanted social and environmental consequence from the company’s operations in order to ensure harmonious coexistence from higher quality of life. Moreover, the company is well aware and gives importance in supporting social and environmental activities such as making donations to religious activities on different occasions, educational institutes and various organizations as well as promoting the social activities of government and private agencies.

3. Corporate Governance Principals on the Company’s Vision and Responsibilities
          To set up the company’s vision and responsibilities, the board of directors is allowing executives’ and employees’ participation in setting up the company’s vision, strategic intent and responsibilities which must be in line with the actual capacity and achievable under the government’s economic policies and current situations. This is to demonstrate that the corporate governance principals could maximize intellectual power to add value or be most beneficial to the organization, the shareholders and other stakeholders, while being widely accepted and praised on.

Strategic Intent and Vision - being a securities and asset management firm with state of art services and investors’ first choice. Achieve the revenue and the managed assets volume at the level of one of the top 4 asset management companies within 5 years.  


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