Board of Directors’ Charter

Charter

 

Scope of Duties and Responsibilities of the Board of Directors of STA

The Board of Directors of STA has determined the scope of duties and responsibilities of the Board of Directors of STA as follows:

  1. The Board of Directors have power and duties and responsibilities in the management of the Company in accordance with the law, the Company’s objectives, the resolutions of the general meeting of shareholders. The Board of Directors shall make prudent business decisions. They shall perform their duty responsibly with care and honesty for the best interests of the Company.
  2. Response to propose, review and approve the policy of the Company
  3. Appoint, remove and assign duties to advisors to the Board of Directors, various committees, and the Managing Director.
  4. Authorize the Executive Directors management officers or any person to act on behalf of the Board of Directors.
  5. Approve investments in securities or debt instruments.
  6. Approve the entering into guarantee for credit facility, for the benefit of companies having businessconnection with the company as the shareholder.
  7. Approve the establishment, merger or dissolution of subsidiary companies.
  8. Seek advice from specialists or company consultants (if any), or retain the services of outside specialists or consultants at the company’s expenses.
  9. Propose the capital increase or capital decrease, or the change in par value, or amendment to the memorandum of association, the articles of association, and/or the objectives of the company to the shareholders for consideration.
  10. Appoint and remove the Company Secretary. be in accordance with notifications, rules and/or regulations related to the Stock Exchange.
  11. Provide the efficiency internal audit system especially the transactions which are the Interest of Directors which is within the scope of Stock Exchange of Thailand’s regulation.


However, in the granting of powers, duties and responsibilities, the Board of Directors shall not grant or sub-grant power to a grantee that causes the Board of Directors or the grantee to approve transactions in which the Board of Directors or the grantee, or any person who may have any conflict of interest (as defined in the notification of the SEC), may have a vested interest, or any other conflict of interest with the Company or its subsidiaries. Approval of such transaction is recurred to be presented to the Board of Directors Meeting and/or the Shareholders.

Composition and Appointment of the Board of Directors of STA

The following is a summary of the composition, appointment, removal or retirement from the Board of Directors of STA set forth in the Articles of Association of STA:

  1. The number of members of the Board of Directors of STA shall be determined by a shareholders meeting but shall be not less than five persons and not less than one-half of the total number of Directors must reside in the Kingdom of Thailand.
  2. Of the total number of Board members, at least one-third and no fewer than three persons must be independent directors;
  3. Directors shall be elected at a shareholders meeting in accordance with the following criteria and procedures:
    1. Each shareholder shall have one vote for one share.
    2. A shareholder must use all of his/her votes in (1) to elect one or several persons as Director or Directors, however, he or she may not split his/her votes unequally between any person in any number.
    3. The persons who receive the most votes shall be elected as Directors, in the number of Directors required or to be elected on the relevant occasion. In the event that votes of two or more nominees are equal in number, causing the number of Directors required or to be elected on such relevant occasion to be exceeded, the chairman of the meeting shall have a casting vote.
  4. At every annual general meeting, one-third of the Directors, or, if the number of Directors is not a multiple of three, then the number nearest to one-third, shall retire from office.The Directors who are to retire from office in the first and the second years after registration of the Company shall be drawn by lots. In subsequent years, the Directors who have been holding office for the longest time shall retire.
  5. Any Director wishing to resign from office shall submit his or her resignation letter to STA. The resignation shall be effective from the date on which STA receives the resignation letter.
  6. The shareholders meeting may pass a resolution to remove any Director from office prior to rotation, by a vote of not less than three-fourths of the number of the shareholders attending the meeting and having the right to vote, and whose shares represent a total of not less than one half of the number of shares held by the shareholders attending the meeting and having the right to vote.

The Board currently comprises twelve Directors, four of whom are Independent Directors. The Company has eight Executive Directors and four Non-executive Directors.

The composition of the Board takes into consideration the nature and scope of the Group’s operations to allow constructive discussion on the basis of board diversity in terms of knowledge, skills, experiences, ages, and genders of directors bringing about the reasonable decision making. In this regard, STA’s directors have invaluable experience in accounting, finance ,business management, strategic planning, marketing, law and the rubber industry in order to perform their duties effectively.