In the case of share repurchases, Thai listed companies were first
allowed to buy back their own shares on 4 July 2001. Under the authority
provided by the board of directors, a listed company can undertake
a share repurchase programme to buy back shares not exceeding 10
per cent of its paid-up capital. To protect the benefits of shareholders
and to preclude any negative consequence that may arise from a share
repurchase programme, the SET forbids a listed company to announce
a share repurchase programme when other key information of the
company is being released to the public. Additionally, repurchasing
shares from connected persons or for a takeover purpose is prohibited.
Moreover, a repurchasing firm must also have sufficient retained
earnings and ability to pay for the liabilities due over the six-month
implementation period for share repurchases.