Page 36 - BAM ONE REPORT 2565 (ENGLISH VERSION)

30 define the target group better and the non-performing assets

The company’s shareholding structure 1. Determination of transaction condition between
The company has no subsidiaries nor joint ventures. the company and the FIDF, other major shareholders or
However, the company has investment in the equity in the enterprises or state enterprises that the FIDF or other
companies listed in the stock exchange and other companies major shareholders of the company are the shareholders.
as a result of forced guarantee or debt restructuring between To enter into a transaction between the company
the debtors and the company or existing financial institutions. and the FIDF, other major shareholders or enterprises or
Bangkok Commercial Asset Management Public Co., Ltd.
state enterprises in which the FIDF or other major shareholders
Relationship with the business group of the major of the Company are a shareholder, it shall be subject to
shareholders the Competitive, Commercial and Arm’s Length. Additionally,
The Financial Institution Development Fund (FIDF) such transactions shall be necessary and reasonable for
was established on 27 November 1985 pursuant to the best interest of the company’s businesses. The directors
Royal Decree amending the Bank of Thailand Act B.E. 2485 or executives having direct or indirectly interest with the
(1942) with the objectives to provide financial aid, restore company’s transaction, shall not engage in considering
and develop Thai financial institutions for stability and approval of such transaction to prevent interest transfer.
equilibrium, particularly amid eruption of financial crises,
under the BOT’s and the government’s policy frameworks. The Company understands that the FIDF has a clear
In the wake of the 1997 financial crisis in Thailand, the FIDF policy in doing transactions and implementing the company’s
rendered financial assistance to the troubled financial policy fairly, as well as complying with the principles of
institutions and, as such, needed to hold shares in numerous transaction making and the company’s policy in such
financial institutions and asset management companies. As regard.
at 31 December 2021, it held shares in two asset management
companies, comprising 45.79% in BAM and 99.99% in 2. Independent trading competition promotion
Sukhumvit Asset Management Company Limited (“SAM”), The company shall be independently commercially
and also held 55.07% of shares in Krungthai Bank Public competitive for best interest of the company’s business.
Company Limited (“KTB”), as illustrated in the chart below: For example, the Company shall be independent in defining
interest rate, fee, service charges, sale price or property
FIDF transfer acceptance, marketing policy and non-performing
loan bidding etc.

45.79% 99.99% 55.07% 3. Determination of policy for purchasing and
distributing properties for the company’s business
BAM SAM KTB operation.
The company shall have clear and independent
policy for considering purchase, transfer accept or distribution
To prevent conflict of interest that may happen from of non-performing loans as well as operation of other
the same major shareholder and to ensure that the company businesses for the company’s normal trade management.
is free for operating the businesses, the FIDF approves the Additionally, the Company shall have clear standard about
code of practice to prevent conflict of interests in any return pricing to have a fair price by recognizing suitability
matter according to the letter No.For.Kor.Thor. 252/2558, of the investment’s return.
dated 08 June 2015, with following details