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It is normal for businesses to encounter problems that require legal methods to resolve, such as breach of contract, payment arrears, etc. When a civil dispute arises, if a contract or debt occurs in Thailand or the nationality of one party is a Thai person or juristic person. The other party can take legal action in Thailand.

Liability of director and shareholder of a company limited under Thailand Law

According to the Thai Civil and Commercial Code, directors of the company are the representatives of the company in carrying out various activities in accordance with the objectives of the company, such as making various contracts with customers. If any action causes damage to the company or its shareholders, the director may be prosecuted under the law for civil or criminal liability. The directors of the company do any business under their powers and duties without being personally liable. The director shall not be responsible for the company’s debts except there is a contract admitting liability as a joint debtor or as a guarantor. Shareholders in a limited company are liable for the company’s debts only for the unused share value.

However, under Section 44 of the Consumer Case Procedure Act B.E. 2551, in the case, that action is brought against a company, and it appears that the company operated or was incorporated in bad faith, used deceitful behavior against consumers, or embezzled company property to have sufficient funds to satisfy obligations, the plaintiff or the court may summon shareholders, directors or persons receiving the embezzled property to be joint defendants unless they are proven innocent.

When a person dies or the law is considered to be a fatality, his property, rights, duties, or liability existence before his death becomes his inheritance to his heirs who must have an administrator of an estate to share the inheritance with the heirs.

If the deceased person has assets registered as land title deeds, condominiums, certificates of utilization, Nor Sor 3, vehicle registrations, bank accounts, these assets in the inheritance management, the relevant authorities will not make any registration changes to those properties until the court has issued an order appointing an administrator of an estate.

The following persons cannot be administrators of an estate:

  1. Person mot sui juris.
  2. Persons of unsound mind or adjudged quasi-incompetent.
  3. Persons adjudged bankrupt by the Court.

The petition to request the Court for appointment of Administrator of an estate must be filed to the Court where the deceased person is domiciled within the Court area at the time of death. If the deceased person does not have a domicile in the Kingdom of Thailand must be filed in Court where inheritance is within the Court area. Therefore, if the deceased is a foreigner who died in Thailand and has assets in Thailand, it is necessary to apply to the Thai court for an order appointing an administrator of an estate to manage the estate in Thailand.

There are 10 grounds of action for divorce under Thai law as follows:

  1. the husband has given maintenance to or honored such other woman as his wife, or the wife has committed adultery, the other spouse may enter a claim for divorce
  2. one spouse is guilty of misconduct, notwithstanding whether such misconduct is a criminal offense or not, if it causes the other:
  3. to be seriously ashamed
  4. to be insulted of hated or account of the continuance of being husband or wife of the spouse having committed the misconduct; or
  5. to sustain excessive injury or trouble where the condition, position, and cohabitation as husband and wife are taken into consideration; the latter may enter a claim for divorce.
  6. one spouse has caused serious harm or torture to the body or mind of the other or has seriously insulted the other or his or her ascendants, the latter may enter a claim for divorce.
  7. one spouse has deserted the other for more than one year, the latter may enter a claim for divorce.
  8. (4/1) one spouse had been sentenced by a final judgment of the Court and has been imprisoned for more than one year in the offense committed without any participation, consent, or the knowledge of the other, and the cohabitation as husband and wife will cause the other party to sustain excessive injury or trouble, the latter may enter a claim for divorce.
  9. (4/2) The husband and wife voluntarily live separately because of being unable to cohabit peacefully for more than three years or live separately for more than three years by the order of the Court, either spouse may enter a claim for divorce.
  10. one spouse has been adjudged to have disappeared or has left his or her domicile or residence for more than three years and is uncertain whether he or she is living or dead.
  11. one spouse has failed to give proper maintenance and support to the other or committed acts seriously adverse to the relationship of husband and wife to such an extent that the other has been in excessive trouble where the condition, position, and cohabitation as husband and wife are taking into consideration, the latter may enter a claim for divorce.
  12. one spouse has been an insane person for more than three years continuously and such insanity is hardly curable so the continuance of marriage cannot be expected, the other may enter a claim for divorce.
  13. If one spouse has broken a bond of good behavior executed by him or her, the other spouse may enter a claim for divorce.
  14. If one spouse is suffering from a communicable and dangerous disease that is incurable and may cause injury to the other, the latter may file a claim for divorce.
  15. one spouse has a physical disadvantage so as to be permanently unable to cohabit as husband and wife, the other may enter a claim for divorce.

Does your situation be the reason for the divorce proceeding under Thai law? We would like to give you some advice.

A consumer Case is meaning a case between a consumer having a dispute in relation to a legal right or obligation related to the consumption of goods or services and a civil case under the law relating to liability for damage arising from unsafe goods for example:

  1. Trading cases such as cars, houses, condominiums, land, and consumer products.
  2. Property rental cases such as cars, houses, condominiums, and offices.
  3. Hire purchase cases such as cars, motorcycles, and electrical appliances.
  4. Case for contract work, such as building a house, or renovating a house or condominiums.

Consumer Protection Act B.E. 2522 (1979)

“Purchase” includes hire, hire-purchase, or acquire by whatever means for monetary consideration or other value

“Sale” includes let, sell-by hire-purchase, or procure by whatever means, for which monetary consideration or other value is demanded, and also includes offer or invitation to do as aforesaid

“Goods” means articles produced or possessed for sale

“Service” means an undertaking to accomplish a work, grant of any right or permission to use or conferring benefit in any property or business, for which monetary consideration or other value is demanded, excluding hire of services under the labor laws

“Produce” means manufacture, mix, prepare, assemble, invent or denature, and includes transform, modify, select or divide for repackaging

“Consumer” means a person who buys or obtains services from a businessman or a person who has been offered or invited by a businessman to purchase goods or obtain services and includes a person who duly uses goods or a person who duly obtains services from a businessman even he/she is not a person who pays the remuneration

“Businessman” means a seller, manufacturer or importer of goods sale, or purchaser of goods for resale, the person who renders services, and includes a person who operates the advertising business

A labor case is a case where there is a conflict between an employer and an employee under an employment contract or about the rights of an employer and an employee under the law on labor protection and the law on labor relations. Such conflicts should be considered by a judge who has knowledge and understanding of labor issues together with associate judges for employers and employees.

When a labor dispute arises, the Plaintiff will file the complaint at the Thai labor court within the territorial jurisdiction of the place of work of the employees, or of which the plaintiff or the defendant has domicile.

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