Both the founder and the executive director of Bangkok-based seafood giant Thai Union (TU) have been fined for insider trading.
In total, nine people have been issued with civil sanctions by Thailand’s Security and Exchange Commission (SEC) after its investigation found they had engaged in insider trading of the company’s stock. Those charged by SEC include Kraisorn Chansiri, who founded the company in 1977, TU Executive Director Chuan Tangchansiri, and Chan Hon Kit, Executive Director of TU subsidiary Songkla Canning.
SEC learned that the insider trading took place between October and November 2017, in advance of the public release of company’s third-quarter 2017 results – a period that saw a significant increase in profit.
According to the SEC, the three aforementioned individuals obtained advance notice of the performance and bought TU shares with the expectation the positive performance would boost the company’s stock price. They also passed the inside information on to family members who also bought Thai Union shares.
SEC has fined Kraisorn Chansiri THB 3.4 million and banned him from serving as a director or executive of any publicly-traded company in Thailand for 14 months. He will also have to reimburse SEC for expenses accrued in the investigation.
Chuan Tangchansiri was fined THB 1.7 million and has been prohibited from serving as a director executive for 14 months, while Chan Hon Kit must pay THB 2.4 million and faces a 12-month ban from serving as an executive or director of a publicly-traded company or affiliate.
The family members involved were fined between THB 550,000 and THB 2.1 million and face bans from serving as directors or executives for between nine and 12 months.
In a statement, TU acknowledged the sanctions, with President and CEO Thiraphong Chansiri advising that the matter would not affect the business operation of the company.
TU’s global brand portfolio includes Chicken of the Sea, John West, Petit Navire, Parmentier, Mareblu, King Oscar, and Rügen Fisch.
