Thailand Legal and Business News: June 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.

SUBMISSIONS:

Chaninat & Leeds is managed by a US lawyer in Thailand. Chaninat & Leeds provided assistance in the translation of Thailand Supreme Court Opinions for the English language Supreme Court Database. Chaninat & Leeds specializes in real estate and land law, and regularly assists non-Thai citizens with real estate acquisitions in Thailand. Furthermore, Chaninat & Leeds assists with US marriage and fiancee visas.

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Thailand to Sign UN Anti-Corruption Agreement

25 June 2009

Thailand is ready to ratify the UN Convention Against Corruption (UNCAC), which is an instrument providing a legal framework to tackle global corruption.

Under the UNCAC, the present 135 member countries are required to coordinate and assist one another on mutual legal assistance and asset recovery for crimes, including extradition. Member countries must back international investigation and extradition between signatory countries.

A source at the National Anti-Corruption Commission (NACC) views the UNCAC as surpassing the bilateral process in terms of recovery of assets abroad through international cooperation.

Based on a source at the Bank of Thailand’s Litigation office, ratification of the UNCAC and Cabinet approval would allow for the setting up of an office by the NACC to recover assets from private companies and commercial banks. At present, the NACC investigates only state enterprises and state banks. The UNCAC should improve Thailand’s efficiency in prosecuting economic crimes, the source stated.

Service Businesses to Remain Protected Under the Foreign Business Act

25 June 2009

A source at the Commerce Ministry stated yesterday that the Ministry wishes to continue with protection of service businesses to protect the interests of domestic Thai companies under the Foreign Business Act (FBA) in the face of recommendations to do otherwise by some in the foreign community.

Foreign companies in Thailand have urged the government to reconsider the removal of Article 21 in the Annex of the FBA, which covers all service businesses, to encourage foreign investment. However, Ministry sources state that Article 21 is still necessary to ensure the competitiveness of Thai companies and protect Thai companies from unforeseen ownership by foreign service businesses.

Notwithstanding, foreign investors wishing to register a Thai company and own more than 50 percent in a service business may apply to a Business Development Department committee for a business license which will be considered on a case-by-case basis.

Link to articles on the Foreign Business Act:
The Foreign Business Act and Other Foreign Business Restrictions: http://www.thailawforum.com/articles/foreignbusiness.html

FAQ: Proposed Amendments to the Foreign Business Act Passed by Cabinet:
http://www.thailawforum.com/foreignbusinessactamendments.html

Environmental Regulation Suspended

22 June 2009

A 2008 ministerial regulation controlling the establishment of manufacturing plants impacting the environment has been suspended by the Industry Ministry to allow projects in the process of construction and receiving environmental-impact assessment (EIA) approval to proceed. The suspension took effect last Monday.

Fearing legal repercussions and with no standard practice for a health-assessment study for projects with effects on the environment, companies with projects under construction with EIA approval have been reluctant to continue their projects. The suspension will allow these projects to continue without fear of breaking the law. However, projects that have not received EIA approval will be suspended until more concrete measures have been set up.

Article 67 of the Constitution mandates that any project impacting the environment is to be prohibited unless a study and evaluation has been conducted to assess the impact to the environment and people’s health.

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