OCEAN Avoids Conflict of Interest by Purchasing Oil from Interrelated Entities

Ocean Commerce Public Company Limited (OCEAN) has announced that the Board of Directors Meeting on September 25, 2018 has passed a resolution of approving the connected transactions in the transfer of CPOA’s crude oil business to Ocean Commerce Public Company Limited to prevent conflict of interest in the sale of CPOA crude palm oil. Connected persons or entities in the future. The scope is as follows.

1. Purchase of CPOA raw palm oil from a person or entity that is interrelated. To purchase at a price not higher than the average price of the past 30 days according to the Department of Internal Trade announced. Ministry of Commerce in normal business, the purchase of CPOA crude palm oil for a relatively high volume will be subject to the condition of delivery of CPOA crude palm oil within 30 days from the date of signing the contract.

2. Renting a Palm Oil Tank The fair value is determined using the fair value model. According to the operating manual.

3. Renting / hiring a Palm Oil Truck The fair value is determined using the fair value model. According to the operating manual.

 

Moreover, OCEAN’s board of directors also has appointed several new directors.

1. Appointment of Mrs. Chatchaya Tritrakulchai as Managing Director – Palm Oil Business / Executive

Director

2. Change of Mr. Uchai Vilailertopoka’s position from Managing Director to Managing Director – Sanitary Ware, Faucet & Water Supply.
3. Appointment of Mr. Jirat Tritrakulchai as Deputy Managing Director of Marketing – Palm Oil Business / Executive Director
4. Appointment of Mr. Ake Caibunmee as Deputy Managing Director, Operation – Palm Oil Business / Executive Director

 

Regarding the private placement of capital increase and issue of new ordinary shares, making Mrs. Chatchaya Tritrakulchai, who now hold 40% stake, to become the major shareholder of OCEAN. The Ministry of Commerce has found that Mrs. Chatchaya (along with Mr. Jirat and Mr. Ake) is the owner of palm oil refinery and all kinds of vegetable oil of Lamae Palm Oil Company Limited that had established since 2014. Thus, causing a conflict of interest and leading to this board of directors meeting.