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Supreme Court Opinions

Mrs.Thidatip Srirun vs. Mr. Lerts Srirun

The plaintiff registered her marriage with the first defendant, who thereafter registered a subsequent marriage with the second defendant and lived with the second defendant as husband and wife although the first defendant and the plaintiff had not yet divorced. The plaintiff filed a divorce in Thailand and claims for right to child support payment from the first defendant. The Supreme Court overturned the ruling of the Appellate Court on child support payment issues in this case.

Miss Napit Injan vs. Sabkeaw Co., Ltd

The plaintiff (buyer) did not make the transfer of condominium ownership within the specified time as stated in the letter the defendant (seller) claimed was sent to the plaintiff, yet the defendant made another appointment to transfer ownership of the condominium unit at a later date, and permitted the plaintiff to inspect the cracks in the wall of the disputed unit. The court finds that, although the defendant's letter stated that the agreement would be terminated if the transfer of ownership was not made in the specified period, the agreement was not invalidated in this instance as the defendant's actions were indicative of the defendant's intentions to sell the condominium unit.


Mrs. Payoun Keawketthong et al. vs. Mr. Kamol Tanangsanakul by acting representatives Mr. Koukert Tanangsanakul et al.

Adverse possession of the land of another person, permitted according to section 1382 of the Civil and Commercial Code, is subject to possession of land with a title deed only and based on the condition that the trespasser must have resided on the land for a continuous period of 10 years or more. Based on this condition, the defendants were deemed not entitled to ownership of the disputed land.

Thailand Legal News Updates:


Penalty for Offering Caffeinated Drinks
21 Febuary 2008

The Food and Drug Administration has issued a warning to companies offering promotional caffeinated drinks as prizes based on media sources. Company representatives disregarding the verdict can face a jail term of 1 year or a fine numbering 5 digits in Thai Baht or both. The verdict came into effect on 25 Dec 2007 but will be punishable by law from 25 Mar 2008 onwards.
Law Students Seek Compensation for Invalid Degrees
22 Febuary 2008

Graduates at Chiang Mai Rajabhat University have filed a police complaint in Thailand against the university after realizing that law courses taken at the university were not approved by appropriate officials, and hence invalidated their law degrees in the eyes of potential employers and educational institutes. According to sources, the university made efforts to obtain approval for the law curriculum in 2004, but their efforts were unsuccessful. The students have plans to seek recompense for damages of 400,000 Baht each.

Capital Controls Lifted
2 March 2008

To encourage investment and foreign capital inflows, on 3 Mar, the Bank of Thailand lifted capital control measures imposed since Dec 2006. The controls had required foreign investors to set aside 30% of their capital inflows with the bank for one year. A penalty was imposed for withdrawal from the capital reserve within a period of less than 1 year. The regulation was a means to help the Thai currency move in line with the currency of the regions and limit short-term currency speculation. The controls covered the debt market and property funds yet excluded stock market and direct investment.

Investors are in favor of the lifting of the controls, in contrast to exporters who fear the ramifications of a stronger Baht. The Baht strengthened 5% after the capital controls were removed. The regulation is expected to improve foreign investment and company registration in Thailand for foreigners.

New Rules on Company Registration
3 March 2008

The government approved changes to the Civil and Commercial Code related to company registration on 23 February 2008. The changes will come into effect on 1 July 2008.

The main changes are as follows:

•  Section 1097 changes the number of persons needed to start a business from not less than 7 persons formerly to not less than 3 persons at present.

•  Section 1111/1 allows for company promoters to file a memorandum and register a company in a single day. Previously there was a requirement of a formal notice and a seven day waiting period.

•  Section 1246/1 permits a registered or limited partnership of not less than 3 persons to change its business entity to that of a limited company on the condition that all partners agree to the change. Once the business entity changes, the assets, debts, rights, and responsibilities transfer from a registered or limited partnership to that of a limited company.

•  Section 1175 requires that the notice of an Extraordinary Shareholders' Meeting be published at least once in a local newspaper, and not less than 7 days prior to the meeting appointment date. The former Act did not require such publication. The notice must be sent by registered mail to all shareholders listed on the company's register not less than 7 days prior to the meeting appointment date. The exemption to this is in the event of a notice for an Extraordinary Resolution, in which the notice must be given not less than 14 days prior to the meeting appointment date. The notice of an Extraordinary Shareholders' Meeting must specify the location, day, time, and the scope of activities of the meeting for deliberation, and in the event of a notice for an Extraordinary Resolution, the issue to be presented for resolution must be specified.

Commentary: The changes enacted should make the company registration process somewhat more streamlined. However, the changes do not really go to the heart of contentious issues. Three versus seven shareholders is a minor issue because four shareholders can always be obtained to hold one share a piece. A change to the foreign business act to allow for foreign ownership would be more progressive.

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