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3. Risk of business interruptions due to force majeure
The Company realizes the importance of risk from the termination of business operation due to force majeure such as re, ood, riot, and protest. To manage this risk, the Company has arranged the Disaster Recovery Site along with the manual on restoration of information conducted by the IT department in order to reassure that employees and systems are ready to be managed and returned to normal operations quickly in case of any crisis. This is to maintain business operation continuity and reduce the risk of damages from force majeure that may prevent business operation.
4. Risk from piracy
Movie content is one of the core contents for Mono Group’s business operation. Although Thailand has faced the problem of piracy for a long time, the government is now paying more attention to the problem as there is establishment of regulatory agency to prevent and control piracy with explicit punishment. As for the Company, legal unit has been set up to monitor whether there is anyone disseminating the content without permission from the Company. Such person will be asked to terminate the dissemination at once and will be reported to the government agency for prosecution. Internal protection system is also provided by limiting the rights of users to access the contents, for example, Monomaxxx.com uses DRM system (Digital Right Management System), the system which requires coding for visual, audio, and video les with rights speci cation to control the access of information and protection of duplication. Meanwhile, Mono Film has joined hands with The National Federation Of Pictures and Contents Association, lm production houses, and related sector to plan and create a long term policy to prevent copyright violations. The coalition of lm businesses was expected to urge the government sector to realize the economic loss of entertainment business. In addition, the Company gives signi cance to risks from acquiring duplicated content or content violation of other parties by accident. To prevent such risks, the Company has set the procedure to verify the ownership of content copyrights, provided channels to le complaints on piracy, and educated employees about copyright law on a regular basis. The Company also creates opportunity to become business partner with both major and minor producers in order to support co-revenue generation and preventing piracy from other parties.
5. Risk from major shareholder having power in directing management policy
As of December 31, 2016, Mr. Pete Bodharamik held up to 71.06 percent of total paid-up capital, accounting for more than a half of paid-up capital. As a result, this leads to his right to control the resolutions of shareholders’ meeting as well as the Company’s policy and management, except for some agendas that require three-fourths of votes in the shareholder’s meeting as prescribed by the law or the Company’s Article of Association. To ensure transparency as well as check and balance system of the Company’s operation, the Company has appointed competent personnel to be the management team. The scope of our operations has been streamlined. The Company has clearly speci ed the delegation of authority to directors and executives and appointed outsiders to be the Company’s three independent directors and members of the Audit Committee who will be responsible for auditing, balancing the decision making and considering approval of any agenda before proposing the shareholder’s meeting. In addition, the Company formed the internal audit unit by hiring an experienced company that is directly supervised by the Audit Committee for promoting their independent operation. This unit shall be responsible for monitoring internal control system as speci ed by the Company in order to ensure transparency and balance of power in our business management.
Annual Report 2016
Mono Technology Public Company Limited 47