Thailand Legal and Business News: September 2009

Supreme Court Opinions

THE GROUND FOR DIVORCETS
Mrs. Prapai Tanonkaew vs. Mr. Kitipoom Phetyoi

The Defendant sent a letter of complaint to the Plaintiff’s superior and instructor that the Plaintiff committed adultery with other woman. This matter is regarded as the personal behavior of the Plaintiff. The Defendant who is the wife of the Plaintiff has the right to express her love and jealousness upon her husband. Her request to the Plaintiff’s superior and instructor to admonish the Plaintiff to think of his family is not regarded as humiliating the Plaintiff’s reputation. No severe disciplinary punishment was executed.

SUBLET AGREEMENT TRANSFER THE LEASED PROPERTY
Ms. Suwanna Sae-heur vs. Mr. Komrat Maliwongse

The 30 years land leased contract indicated that leased for construction the buildings and there was no tea money for the lease. T, the former lessor and the three Defendants did not designate the construction period and the amount of the buildings that the three Defendants is going to build up on the leased land. From the contract, it is cleared that the three Defendants have right to construct the building in any quantity and at any time during the leased period. And in setting the new agreement on constructing period.

NON-MONETARY DAMAGES AND ACTING ON BEHALF OF A MINOR
Mr.Chaot-uthai Fuungsiriviboon vs. Mr. Boonruen Netniyom

The plaintiff claims for compensation in cause of action on tort. The defendant argued that the plaintiff’s lawful father made a contract of compromise regarding damages so there is no current right to claim the compensation of the plaintiff. The Court judged that the legal representative of the Plaintiff made the contract of compromise relating to the property of the minor without Court consent which is a void act. The right to claim has therefore not expired.

CREDITS

The law firm Chaninat & Leeds, comprised of US and Thai lawyers, provided kind assistance in the development of content for this website. The firm consists of licensed Thai and US attorneys in Thailand.

Thailand Legal News Updates:

NEWS :

Value of BOI Projects Decrease

11 September 2009

Secretary General Atchaka Sibunruang Brimble has announced that the total value of company projects, as specified in their applications for BOI tax privileges, has decreased from 799 projects at 283 billion baht last year to 693 projects at 246 billion baht during the same period this year, representing a decline in project value of 37 billion baht.

Many companies in the renewable power industries have continued to apply for BOI privileges. Projects valued at more than 1 billion baht in the renewable power generation industries were concentrated in the natural gas sector with a combined value of 86.2 billion for three project applications. Wind power projects comprised 15.6 billion for four projects, and 2.3 billion for a solar power project.

Service industry projects valued at more than 1 billion baht comprised three hotels with combined value of 9 billion baht, sea-freight projects with combined value of 9.5 billion for three projects, and an air-freight project worth 8.1 billion baht.

There have been many applications from food companies, primarily in processed foods, with combined value of 6.46 billion during the eight month period.

Countries where the Thailand Board of Investment has recently opened up an office are reporting increased investment interest in Thailand.

As such, 14 applications have been submitted to the BOI for tax privileges by Chinese companies with a combined total value of 4.83 billion during the eight month period, an increase of 298 percent from the same period last year. Project applications from South Korean companies have combined worth of 4.73 billion for 21 projects, and Taiwanese companies a combined 4.43 billion baht for 23 projects.

More applications have been submitted from countries where the Thailand Board of Investment staged roadshows, such as India and the US, with combined project value increasing 400 percent and 58 percent respectively.

Draft Amendment for Simpler Company Registration

7 September 2009

On 18 August, the Cabinet approved a draft amendment proposed by the Ministry of Commerce aimed at simplifying company registration for private companies. The amendment addresses complaints made by companies as a result of amendments to the Civil and Commercial Code made in 2008 according to sources.

If approved, the draft law will allow company registration in Thailand by partnerships and companies at any Partnerships and Companies Registration Office, whereas the 2008 amendment required registration at the head office.

The Ministry of Commerce may waive fees for registration, document examination, and requests for certificates and certified copies of company affidavits.

In the event an entity does not register as a limited company within 10 years, its registered memorandum of association will become null.

Moreover, under the proposed law, directors would not need to be physically present during board of directors meetings, but may be present through communication technologies.

Publication in a local newspaper of the annual general meeting notices will not be required as it was formerly if the draft law is approved, but can be sent to all shareholders by registered mail. The exception would be companies issuing bearer shares.

<< PREV PAGE NEXT PAGE >>