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Information About Company Directors in Thailand

Transcript of the above video:

In this video, we'll be briefly discussing director and director changes in Thailand. In the Thai corporate system, you have shareholders, you have directors and directors are sort of the day to day operators. And for that reason, there's a lot of formalities associated with directorships here in Thailand most notably one of them are the formalities associated with changing directors in Thailand.

Changing of directors oftentimes require legal publication, legal notification sort of constructive legal notice to the wider community with respect to the changes of directors in the company. Again, directors of a company have a lot of responsibilities ad liabilities to the underlying company as well as being what we would call in like say in U.S. law, directors are clearly registered agents of the company. So there's sort of agency function has to be explained to the public at large and if there's a change of director in the company, the policy reasoning is that these things need to be published. The public needs to be put on notice on who to deal with respect to a company.

So for that reason, a director changes can be somewhat of an administrative hurdle if one wants to get something done that quickly as oftentimes it's going to take a few weeks to go ahead not only to run out the clock with respect to legal publication period timeframes but also with some of the other formalities associated with changing of directors. So it's not something that should be assumed that can be done basically overnight. Changing of directors often is of a time-consuming process and one needs to adhere to all the required formalities in order to make sure that the change happens to not only in a practical sense happens quickly and efficiently but in a legal sense, it actually comes off maintaining all the formalities thereby ensuring that the underlying director and the change thereof of that director is legal and moving forward, that person is off and a new person presumably is on the company.

Or it may be the board may have multiple directors and somebody just doesn't want to be a director anymore, somebody wants to come on. You need to make sure the formalities are maintained and adhered to in order to make certain that legally speaking, the directors or the people that the company wants as director or doesn't want as directors are in fact legally in the positions desired.