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Thailand – New Rules for Company and Partnership

posted 1 year ago

The Civil and Commercial Code Amendment Act (No. 23) B.E. 2565 (2022) came into force and effect on 16 February 2023. The objectives of this amendment are to reduce career barriers and increase competitiveness of the country.

Key changes are as follows:

Section

Section 1097: Any three or more persons may, by subscribing their names to a memorandum and otherwise complying with the provisions of this Civil and Commercial Code, promote and form a limited company

Amendment

Two (2) persons may form a limited company

Section

Enacting Section 1162/1

Amendment

Directors are able to remotely attend meetings via video conference

Section

Section 1237: A limited company may also be dissolved by the court on the following grounds: (4) the numbers of shareholders are reduced to less than three

Amendment

Minimized shareholders from less than three (3) to only one person

Section

Section 1238: Amalgamation and merger

Amendment

1) After amalgamating, a new company may only exist and others are dissolved or 2) A merging company exists and others are dissolved

Section

Enacting Section 1239/1

Amendment

A new mechanism was established to deal with shareholders who do not agree with amalgamation/merger

Section

Section 1240: The company must publish once at least in a local newspaper and send to all creditors known to the company a notice indicating the particulars of the proposed amalgamation and requiring the creditors to present, within sixty days from the date of the notice, any objections they may have to it. If no objection is raised during such period, none is deemed to exist. If an objection is raised by any creditor, the company may not proceed with the amalgamation unless it has satisfied the claim or given security for it.

Amendment

Protecting the company’s creditors and minimizing the time to make the process faster

Section

Enacting Section 1240/1

Amendment

Holding a shareholders’ meeting shall be completed within six (6) months from the amalgamation

Section

Section 1243: The new company is entitled to the rights and is subject to the liabilities of the amalgamated companies.

Amendment

Revised wording to be more specific in regard to rights and liabilities

Section

Section 1246/1: A registered partnership or limited partnership having at least three partners may be transformed into a limited company upon having consent of all partners and upon following actions being taken: (1) notifying, in writing, the partners’ consent to  transformation of a partnership into a limited company to the Registrar within fourteen days as from the date of all partners’ consent; (2) publishing once at least in a local newspaper and sending to all creditors known to the partnership a notice, in writing, indicating particulars of the proposed transformation of the partnership into a company and requiring the creditors to present, within thirty days as from the date of the notice, any objections they may have to it. If an objection is raised by any creditor, the partnership may not proceed with transformation unless it has satisfied the claim or given security for it

Amendment

All partners, instead of having at least three partners, must agree to transform a registered partnership into a limited company.

Author

posted 2 days ago

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