Doing Business in Thailand

While companies are juristic persons and cannot be as such subject to the punishment of imprisonment it does not mean that a company may not be prosecuted for a criminal offence in Thailand. To the contrary, companies may be prosecuted the same way as individuals.

What are the principles applicable to the prosecution of a company? 

1. The acts of the company employees or managers or directors will be attributed to the company only if they were done in the scope of employment or for the company’s benefit.
2. A company may be found guilty and sentenced only if the prosecution is able to prove all elements of a particular offense or prove beyond a reasonable doubt.

 Please note however that: 

1. A company may be prosecuted even it is not possible to identify and/or convict an individual offender;

2. Some statutes assume the liability of the company management and as a result defendants (including the company) will have to prove absence of culpability (money laundering law for example).

What type of sanctions are applicable to companies?

A company that is found guilty of a criminal offence may be subjected to many forms of punishment depending of the law applicable to the case.

For example it can be fined, or its assets (or part of its assets) may be seized, or it might be forced to sell its property within a certain period of time, or it can be fined on a per day basis until the company stop to violate the law.

Some laws for example the Office of the Securities Act allows the control authority not only to sanction the company but additionally empowered  it to revoke the business license or the company, or to remove and/or appoint the company directors or managers, or even to liquidate and dissolve a company.  

In conclusion, far from being immune from criminal prosecution companies in Thailand may be subjected depending of the law applicable to very harsh form of sentencing.

Note: This post is an excerpt of Rene Philippe Dubout next book: “How to Invest Safely Into Thailand” to be published in January 2010

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

Originally posted 2009-12-15 10:20:04.

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3. Company Registration: New Companies Registration in 2009
4. Thai Corporate Documents – The Memorandun of Association
5. Buying a Condominium: Buying with an offshore company
6. Corporate: Disclosure requirement of Thai shareholders
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8. Doing Business in Thailand: Thai PLC and Nominees definition