The Stock Exchange of Thailand has been helping Thai listed companies to have good governance adopted by the recognized international standard. The starting point was in 1995 before the financial crisis, when it studied roles of audit committee for listed companies. After that, in early 1998 it issued a listing requirement indicating that effective from 1999 onwards, all listed companies have an audit committee. In that year, the SET also issued a guideline namely "Code of Best Practices for Directors of Listed Companies ". Two years later, the Good Corporate Governance Committee, consisting of representatives from a variety of professional organizations, disseminated a guidelines for reporting on corporate governance. The guidelines encouraged the Thai listed companies to practice a good governance, which then led to the development of Thai capital market for transparency and recognition.
The Thai government designated 2002 as the "Compass for Good Corporate Governance" and set up the National Corporate Governance Committee (NCGC). In the same year, the Exchange also proposed fifteen principles of good corporate governance for listed companies to implement. Starting from the accounting period ending December 31, 2002, listed companies are required to demonstrate, in their annual registration statement (Form 56-1) and annual reports, how they apply the fifteen principles. If they choose not to apply any principle, they are required to provide justification.
In July 2002, the SET has established the Corporate Governance Center to help listed companies develop their corporate governance system. The Center provides consulting services to and exchanges ideas about corporate governance practices with directors and executives of listed companies, as well as those of firms preparing to be listed companies
The continuous campaign and boost up on governance to listed companies has reflected the better Thai capital market’ s image on good governance. This is evidenced by the international assessment as follows:
- CG-Watch 2012 by ACGA, Thailand was ranked up to the third from the 11 appraised Asia Countries (Thailand , Japan, Hong Kong, Singapore, India, Taiwan, China, Korea, Indonesia, Philippines, and Malaysia)
- CG-ROSC 2012 by World Bank, Thailand got the highest average score at 83% which is the first rank from the 11 voluntarily appraised Asia Countries (Thailand, Bhutan, Bangladesh, Hong Kong, India, Indonesia, Philippines, Nepal, Vietnam, Pakistan, and Malaysia)
- ASEAN CG Scorecard 2012-2013 by IOD, Thailand got the highest average score at 67% which is the first rank from the 6 voluntarily appraised ASEAN Countries (Thailand, Singapore, Indonesia, Philippines, Vietnam, and Malaysia)
- Studying and enhancement of the Principles of Good Corporate Governance for listed companies and its best practices to be in line with international standards.
- The Center provides consulting services to and exchanges ideas about corporate governance practices with directors and executives of listed companies, as well as those of firms preparing to be listed companies.
- Corporate Governance Self Assessment
- Producing and disseminating a variety of information and materials as guidelines.
- Holding activities to help educate listed companies' directors and executives.
- Recognition of listed companies disclosing their compliance with Good Corporate Governance with Top CG Report Awards annually.