Tax & Legal News Flash Issue 16 | KPMG | TH

Tax & Legal News Flash Issue 16

Tax & Legal News Flash Issue 16

Legal news: Summary of recent amendment to five main business laws

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Legal news: Summary of recent amendment to five main business laws

Legal news: Summary of recent amendment to five main business laws

Recently, five main business laws have been amended with an aim to improve Thailand’s ranking for ease of doing business in the World Bank Report. The amended laws have been effective from 4 April 2017.

 

We have prepared and are pleased to share with you a summary of some key issues and amendments to such laws as follows:

No.
Law
Issue
Key amendment
1. Company law under Civil and Commercial Code
  • Deadlock solution
  • Deadlock solution can be specified in Articles of Association of a limited company.
  • Court can order a company dissolution in case of deadlock.
   
  • Dividend payment
  • Dividend must be paid within one month after resolution of shareholders or directors’ meeting.
2. Labor Protection Act
  • Work rules
  • An employer is no longer required to file a copy of the work rules with local labour officer (Notes: An employer must prepare and announce the work rules at work place upon having 10 or more employees). 
3. Public Limited Company Act
  • Minority shareholders’
    calling a shareholders’ meeting
  • Shareholders holding at least 10% shares in a public company can request the directors to call a shareholders’ meeting.
   
  • Minority shareholders’
    requesting inspection
  • Shareholders holding at least 5% shares in a public company can request for an inspection on the company’s business and financial status.
4. Social Security Act
  • Deadline extension
  • Some deadlines under this Act can be extended by the related Minister in case of force majeure or any other necessary cause, e.g. the deadline for payment of social security contribution.
5. Bankruptcy Act
  • Limitation on secured
    property enforcement
  • A creditor is prohibited from enforcing secured property unless obtaining the court’s approval or passing one year upon the court’s accepting a petition for the creditor’s rehabilitation.
   
  • Perishable secured property
  • A secured creditor can sell some types of secured property with damage risk and keep remuneration from sale instead, e.g. perishable property.  
   
  • Resolution to accept rehabilitation plan
  • A creditor, who is not affected or is protected/remedied, is not entitled to vote to accept the debtor’s rehabilitation plan. This is to give full voting right to the affected creditor.
   
  • Electronic notice
  • The Receiver can publish its order and the court’s orders, judgment or notices via electronic means.

 

Despite the fact that main purpose for the foregoing amendments is to facilitate business operations, such amendments could affect business operations in several aspects. Therefore, business operators should carefully consider the potential impact and prepare an implementation plan before taking any actions related to such amendment. 

 

We would welcome any opportunity to discuss the relevance of this matter upon reque

 

KPMG in Thailand’s Legal Services Team offers a wide range of practical legal solutions. For more information, please visit Legal Services 

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KPMG in Thailand’s Legal Services Team offers a wide range of practical legal solutions.

Tax & Legal News Flash

Tax & Legal News Flash

KPMG Thailand Tax's bi-monthly newsletter which covers the latest issues in taxation and government announcements relating to tax matters.

© 2017 KPMG Phoomchai Tax Ltd., a Thailand limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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