• 
• 

Published on March 14, 2008

ML Chayotid Kridakon and Supattanapong Punmeechaow have abruptly quit as senior executive of SCB Securities.

Most of SCB Securities' board members, three of whom serve on the Privy Council, have also tendered their resignations, paving the way for a shake-up at one of the country's top securities houses.

Their resignations will take effect on March 25, when a shareholders' meeting will be held to fill the vacancies.

Vichit Surapong-chai, executive chairman of Siam Commer-cial Bank, would not comment on the resignations of Chayotid and Supattanapong as CEO and executive director of SCB Securities, as well as members of the board.

But he said the new Bank of Thailand Act has a provision on consolidated supervision, under which commercial banks are required to keep oversight or control over their subsidiaries.

As a result, members of the board of SCB Securities, who are not representatives of the bank, have agreed to resign. Besides Chayo-tid and Supattanapong, the board consisted of Siddhi Savetsila, Kamthon Sindhava-nanda, Palakorn Suwanrath, Preecha Chung-watana, Sutharntip Phisit-bumtoon and Kris Kasemsarn.

Siddhi, Kamthon and Palakorn are distinct personalities, who are also Privy councillors. Sutharntip retains his seat as he has been sent over by the bank.

Vichit insisted the resignations of Chayotid and Supattanapong were separate from those of the other board members.

"The central bank's policy for commercial banks to have more supervision over their subsidiaries has been implemented since last year. This is a matter that all parties understand over the need for SCB to have a supervisory role," Vichit said.

According to financial sources, SCB Securities and Siam Commercial Bank have been in conflict for a while over the way business is run, because Vichit views the securities subsidiary as becoming too independent.

Chayotid, who played a major role in advising Temasek Holdings of Singapore in its takeover of Shin Corp, was reported as having a difficult time working with Vichit, as he would like to carve out a freer course of business for the securities firm.

He lost favour when Vichit picked Kannikar Chalitaporn from Unilever to become president of the bank instead of Chayotid.

A financial source indicated that Chayotid would like to work for the Crown Property Bureau.

Vichit said the bank would send its representatives to fill in the vacant places at SCB Securities on March 25 at the shareholders' meeting.

Thanong Khanthong

The Nation