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SEC and SET co-host a seminar on class action as another tool to protect investors’ interest

Bangkok, June 21, 2016 – The SEC and the Stock Exchange of Thailand (SET), with support from the Office of the Judiciary, have recently co-organized a capital market seminar to discuss how class actioncan be another legal option for protecting investors’ interest.

Guest lectured by Appeal Court Judge Pongdej Wanichkittikul to stakeholders from listed companies, the Thai Investors Association and the Association of Investment Management Companies among others, the seminar highlighted the principles and the processes of the law.
SEC Senior Assistant Secretary-General Waratchya Srimachand said: “The SEC has been the key supporter of the Classs Action Law from the very beginning because it could be an effective channel for protecting investor’s rights in the capital market. Since the law came into force in December 2015, essentially any group of inflicted persons may file a civil class lawsuit under jurisdiction of the court and according to the nature and types of the legal case.

“The law specifies the standard action whereby all parties suffering damage from wrongdoings of the same facts and legal issues become members of a class action automatically except for those who choose to opt out. For example, dessimination of false statements via social media that may affect securities price movements could be subject to a class action should several investors suffering damage from the said incident during the same period of time decide to participate in such legal proceeding. This is convenient because members of a class action do not need to go through each and every step individually, and the court’s decision binds all members of the class at once,” she added.  

The court and lawyers have a major role in the legal proceedings of a class action. Pursuant to the Thai Class Action Law, lawyers have the right to receive rewards from the offenders at an amount not exceeding 30 percent of the total damages entitled to the class.

1 A class action is a type of lawsuit filed and prosecuted by the plaintiff who collectively represents a group of people who suffer damage from the same causes and wish to exercise legal right to protect own rights. For more information, visit http://web.krisdika.go.th/data/law/law4/%bb04/%bb04-20-2558-0001.pdf