Rule allows vetoes on state enterprises
The Organisation for Economic Co-operation and Development (OECD) has recommended the State Enterprise Policy Office (Sepo) amend relevant legislation and introduce a Golden Share mechanism, granting the government the authority to veto decisions by state-owned enterprises that could affect national security, even if it no longer holds a majority stake.According to Tibordee Wattanakul, director-general of Sepo, the OECD proposed amending relevant legislation to expand Sepo's powers and responsibilities, enabling it to play a more proactive role as a shareholder in state-owned enterprises.
The suggestion focuses on offering a Golden Share, a special class used in developed countries such as France where the government or the original shareholder retains the right to veto certain resolutions involving matters of national security, even if the government's shareholding is reduced to less than 50%.
For example, the Finance Ministry holds a 51.38% stake in PTT Plc, and the introduction of a Golden Share mechanism would allow the ministry to retain voting rights on critical matters, such as oil pricing policies or certain investments that could affect national security, even if it ceases to be the majority shareholder in the future.
