Category: Civil and Commercial Law
Thai Labor Law: Legality of Non-Competition Contracts
A common feature in employment contracts, typically those of top-level executives, is the non-competition agreement. Such agreement normally requires that should the employment contract terminate, the employee is prohibited from engaging in a competing business for a fixed period of time. Specifically, a typical clause will define a certain period of time following the termination […]
Withdrawal of Shareholder Meeting Resolutions
A basis for withdrawing a resolution passed by a shareholder meeting of a Thai limited company is that the resolution was passed through bad-faith. Section 5 of the Civil and Commercial Code provides that “Every person must, in the exercise of his rights and in the performance of his obligations, act in good faith.” Furthermore, […]
Acquiring Land with a Foreign Spouse
The primary concern behind Thai government regulations related to the acquisition of land by a Thai national married to a foreign spouse is the issue of nominee landownership. Under the Land Code of Thailand, the act of a Thai national owning land as an agent of a foreigner, which is to say, for the benefit […]
Acquiring Land in Thailand with a Foreign Spouse
At this time, Thailand does not prohibit its citizens who are married to (or cohabiting with) foreign spouses from acquiring land. Nevertheless, the acquisition of land by Thai nationals who are married to foreign spouses is extensively covered by government regulation and it is conditioned on the legal principle that any land owned by the […]
Shareholders’ Right of Inspection
Under Thai law, the shareholders of a limited company are its legal owners and are entitled to certain rights according to the Civil and Commercial Code. Nevertheless, due to the nature of a limited company, the ownership rights of shareholders are not absolute and, for example, are not the same as those of the partners […]
Agency Law in International Commerce in Thailand
An important consideration when conducting an international commerce business in Thailand is the issue of agency relationships between a distributor and the overseas supplier or manufacturer. Where an agency agreement has been created, the general rule of law is that principals are held liable to third parties, such as purchasers, for the authorized actions of […]
Betrothal Agreements under Thai Law
Under Thai law, a promise to marry creates a legally binding agreement if the groom transfers property called the khongman (a “reverse dowry” or “bride price”) to the bride after the betrothal has taken place. Therefore, as a legal contract, a betrothal gives rise to legal ramifications. According to Sections 1439 and 1440 of the […]
Disinheritance from a Will
The Civil and Commercial Code generally provides two categories whereby a testator may disinherit one of his or her statutory heirs from a will. According to Section 1608, the testator “may disinherit any of his statutory heirs only by an express declaration of intention… by will” or “by writing deposited with the competent official.” Furthermore, […]
Domestic Violence Law in Thailand
Domestic violence is not only a crime, but a serious social problem that is inadequately addressed by normal civil and criminal laws. For example, in a case involving child abuse, criminal law would only allow for the imprisonment of the offending parent for assault, without any consideration for the effects to the overall family unit. […]
Proposed Debt Collection Act
Just mid last year, the National Legislative Assembly of Thailand voted to accept, in principle, the terms of the Debt Collection Act. Drawing inspiration from analogous laws in the United States and Australia, this new legislation will act as a consumer protection law protecting consumers from abusive practices on the part of debt collectors. The […]
