Corporate Governance Policy
1. Introduction
Krungthai Asset Management Public Company Limited or KTAM was founded on 7 October 1996. Currently, the company has a fully paid-up registered capital of 200 million baht. It is the only state-controlled securities firm in Thailand with Krung Thai Bank Public Company Limited holding 99.99% of the shares. The company is also licensed by the Ministry of Finance to manage various types of assets including mutual funds and private funds. KTAM offers asset management services to individuals, institutions, organizations and state enterprises. In asset management, the company is fully aware that credibility, integrity, transparency, fairness and accountability are of utmost importance to its business and track record is evidence that KTAM has earned the support of clients, investors and other stakeholders. As such, the company has been achieving continued success.
The company’s Board of Directors place great emphasis on this matter and subsequently established a Corporate Governance Policy and operating guidelines to enhance clarity and promote development of a corporate governance culture within the company.
Our corporate governance policy and guidelines demonstrate the company’s unwavering commitment to continue applying good corporate governance principles and measures. They have played a significant part in the company’s success and progress all along.
2. Corporate Governance Principals
Corporate governance or good governance hinges on proper management structure and strategy through well-defined roles, guidelines and operating procedures aimed at benefiting the business and raising management standards. This builds integrity and acceptance, domestically and internationally, fostering genuine advancement at every level of the organization, ranging from shareholders, board of directors, executives and employees. Furthermore, measures encourage staff members to extend and apply corporate governance principals when interacting with each other as well as through engagement with investors, clients and other stakeholders as follows:
The 7 principals of corporate governance
1) Demonstrate strategy and capacity to add value over the long run without risking short term exploitation. This could be achieved through establishment of a company vision and strategic intent suitable with one’s own capability to successfully build value, raise operational efficiency and effectiveness, ensuring satisfaction among shareholders, clients and investors, without risking loss or increasing any short term cost which could damage or lower the business’ quality and value.
2) Demonstrate accountability at the board of directors and executive level. Operate with honesty and fairness to shareholders and investors, both large and small. Operate the business to produce suitable levels of growth, stability and earnings for shareholders and investors. Report the company’s status and operational results to shareholders and investors, equally, regularly, completely and truthfully. At the staff level, provide appropriate compensation to match one’s knowledge, skills, responsibilities and performance, while rewarding and penalizing employees equally and impartially. Place importance on the development of employees through knowledge and skill transfers with opportunities granted equally and regularly.
At the client/investor level, perform duties in accordance with contracts, agreement and terms agreed with the clients/investors. Ensure clients’ confidence and satisfaction are achieved through quality services and prompt response, while disclosing information regarding fund trades comprehensively without distortion. Clients are also entitled to file complaints via multiple channels such as the company’s website, marketing and customer service staff, the compliance office, or Securities and Exchange Commission.
3) Possess understanding and competence to carry out assigned duties and responsibilities effectively
At the board of director level, establish policies appropriate to industry environment and standards. The board must diligently perform its duties expected of their roles and responsibilities. Systematically evaluate the performance of the management and review the company’s business plan with respect to prevailing business conditions; review major strategies and policies, including key performance indicators (KPIs) covering the company’s various operations.
At the executive level, formulate strategic business plans appropriate for the company’s performance capabilities. Establish comprehensive risk management and internal controls. Monitor operations to maintain quality and avoid damage; instill confidence to sustainably grow the business.
At the staff level, possess understanding and competence to carry out assigned duties and responsibilities. Be fully engaged and attentive to the job at hand, while continually striving to learn. Understand the vision and goals of the company and oneself, as well as engage with all parties in accordance to good corporate governance principles.
4) Promote best practices and observe good corporate culture, code of ethics, business conduct and integrity in carrying out tasks to add value to oneself, the company, the board of directors, the management and the employees at all levels. Act prudently and appropriately to avoid conflict of interests. Refrain from wrongdoing and adhere to honesty. Build operational excellence by having clear policies targeted towards attainment of the company’s goals. Encourage and support employees to continually develop themselves. Foster spirit of cooperation among relevant stakeholders such as shareholders, clients, investors, executives and employees.
5) Fair and equitable treatment of stakeholders. For instance, shareholders, clients and investors cannot exploit each other; all will be subjected to equal treatment whether pertaining to privileges or access to information. Equally important is awareness of the rights of other stakeholders such as employees, business partners, investors, competitors, etc. who are entitled to respect and favorable treatment.
6) Demonstrate operational transparency. Actions can be justified and traced through establishment of measures such as clear decision-making processes and transparent working procedures backed by disclosure reports or performance analysis for review by shareholders, clients, investors and other stakeholders equally, adequately and promptly. A public relations officer should be appointed to handle dissemination of information and communications. The board of directors and all committees should adopt a balanced view and help monitor the company’s operations and encourage supervision and care to ensure stability and sustainability of the company’s business.
7) Possess social and environmental awareness, which is a part of stakeholder management, to reduce or eliminate unwanted social and environmental consequences from the company’s operations in order to ensure harmonious coexistence and higher quality of life. Moreover, the company is aware and places importance on supporting social and environmental activities such as donations to various religious activities, educational institutes and various organizations as well as supporting social programs of government and private agencies as appropriate.
3. Embedding Corporate Governance Principals into the Company’s Vision and Mission
To establish the company’s vision and mission, the board of directors welcome participation from executives and employees to help formulate the company’s vision, strategic intent and mission which must be in line with the company’s actual capacity and can realistically produce successful performance under prevailing economic conditions, government policies, and prevailing situation. This is to demonstrate that the application of corporate governance principals could maximize intellectual power to add value and benefits to the organization as well as shareholders and all other stakeholders, simultaneously earning wide acceptance and praise.
Strategic Intent and Vision: A securities and asset management firm with truly modern services and preference as investors’ first choice. Rank one of top 4 asset management companies in terms of performance and assets under management within 5 years.
Krungthai Asset Management Public Company Limited or KTAM was founded on 7 October 1996. Currently, the company has a fully paid-up registered capital of 200 million baht. It is the only state-controlled securities firm in Thailand with Krung Thai Bank Public Company Limited holding 99.99% of the shares. The company is also licensed by the Ministry of Finance to manage various types of assets including mutual funds and private funds. KTAM offers asset management services to individuals, institutions, organizations and state enterprises. In asset management, the company is fully aware that credibility, integrity, transparency, fairness and accountability are of utmost importance to its business and track record is evidence that KTAM has earned the support of clients, investors and other stakeholders. As such, the company has been achieving continued success.
The company’s Board of Directors place great emphasis on this matter and subsequently established a Corporate Governance Policy and operating guidelines to enhance clarity and promote development of a corporate governance culture within the company.
Our corporate governance policy and guidelines demonstrate the company’s unwavering commitment to continue applying good corporate governance principles and measures. They have played a significant part in the company’s success and progress all along.
2. Corporate Governance Principals
Corporate governance or good governance hinges on proper management structure and strategy through well-defined roles, guidelines and operating procedures aimed at benefiting the business and raising management standards. This builds integrity and acceptance, domestically and internationally, fostering genuine advancement at every level of the organization, ranging from shareholders, board of directors, executives and employees. Furthermore, measures encourage staff members to extend and apply corporate governance principals when interacting with each other as well as through engagement with investors, clients and other stakeholders as follows:
The 7 principals of corporate governance
1) Demonstrate strategy and capacity to add value over the long run without risking short term exploitation. This could be achieved through establishment of a company vision and strategic intent suitable with one’s own capability to successfully build value, raise operational efficiency and effectiveness, ensuring satisfaction among shareholders, clients and investors, without risking loss or increasing any short term cost which could damage or lower the business’ quality and value.
2) Demonstrate accountability at the board of directors and executive level. Operate with honesty and fairness to shareholders and investors, both large and small. Operate the business to produce suitable levels of growth, stability and earnings for shareholders and investors. Report the company’s status and operational results to shareholders and investors, equally, regularly, completely and truthfully. At the staff level, provide appropriate compensation to match one’s knowledge, skills, responsibilities and performance, while rewarding and penalizing employees equally and impartially. Place importance on the development of employees through knowledge and skill transfers with opportunities granted equally and regularly.
At the client/investor level, perform duties in accordance with contracts, agreement and terms agreed with the clients/investors. Ensure clients’ confidence and satisfaction are achieved through quality services and prompt response, while disclosing information regarding fund trades comprehensively without distortion. Clients are also entitled to file complaints via multiple channels such as the company’s website, marketing and customer service staff, the compliance office, or Securities and Exchange Commission.
3) Possess understanding and competence to carry out assigned duties and responsibilities effectively
At the board of director level, establish policies appropriate to industry environment and standards. The board must diligently perform its duties expected of their roles and responsibilities. Systematically evaluate the performance of the management and review the company’s business plan with respect to prevailing business conditions; review major strategies and policies, including key performance indicators (KPIs) covering the company’s various operations.
At the executive level, formulate strategic business plans appropriate for the company’s performance capabilities. Establish comprehensive risk management and internal controls. Monitor operations to maintain quality and avoid damage; instill confidence to sustainably grow the business.
At the staff level, possess understanding and competence to carry out assigned duties and responsibilities. Be fully engaged and attentive to the job at hand, while continually striving to learn. Understand the vision and goals of the company and oneself, as well as engage with all parties in accordance to good corporate governance principles.
4) Promote best practices and observe good corporate culture, code of ethics, business conduct and integrity in carrying out tasks to add value to oneself, the company, the board of directors, the management and the employees at all levels. Act prudently and appropriately to avoid conflict of interests. Refrain from wrongdoing and adhere to honesty. Build operational excellence by having clear policies targeted towards attainment of the company’s goals. Encourage and support employees to continually develop themselves. Foster spirit of cooperation among relevant stakeholders such as shareholders, clients, investors, executives and employees.
5) Fair and equitable treatment of stakeholders. For instance, shareholders, clients and investors cannot exploit each other; all will be subjected to equal treatment whether pertaining to privileges or access to information. Equally important is awareness of the rights of other stakeholders such as employees, business partners, investors, competitors, etc. who are entitled to respect and favorable treatment.
6) Demonstrate operational transparency. Actions can be justified and traced through establishment of measures such as clear decision-making processes and transparent working procedures backed by disclosure reports or performance analysis for review by shareholders, clients, investors and other stakeholders equally, adequately and promptly. A public relations officer should be appointed to handle dissemination of information and communications. The board of directors and all committees should adopt a balanced view and help monitor the company’s operations and encourage supervision and care to ensure stability and sustainability of the company’s business.
7) Possess social and environmental awareness, which is a part of stakeholder management, to reduce or eliminate unwanted social and environmental consequences from the company’s operations in order to ensure harmonious coexistence and higher quality of life. Moreover, the company is aware and places importance on supporting social and environmental activities such as donations to various religious activities, educational institutes and various organizations as well as supporting social programs of government and private agencies as appropriate.
3. Embedding Corporate Governance Principals into the Company’s Vision and Mission
To establish the company’s vision and mission, the board of directors welcome participation from executives and employees to help formulate the company’s vision, strategic intent and mission which must be in line with the company’s actual capacity and can realistically produce successful performance under prevailing economic conditions, government policies, and prevailing situation. This is to demonstrate that the application of corporate governance principals could maximize intellectual power to add value and benefits to the organization as well as shareholders and all other stakeholders, simultaneously earning wide acceptance and praise.
Strategic Intent and Vision: A securities and asset management firm with truly modern services and preference as investors’ first choice. Rank one of top 4 asset management companies in terms of performance and assets under management within 5 years.