THAI LAW ,THAILAND LAW- Agents and Clients

THAI LAW ,THAILAND LAW- Agents and Clients

Actual Case:

Thai Law

              Thai law,Thailand law |  Quite recently I had been given a case about a dispute regarding the sale of a condominium unit owned by a foreigner. The owner, who had just returned from overseas on getting news that there was a prospective buyer was not happy with the deal as money had already changed hands without his approval. Also he had not met anyone at all face to face and did not have all the details of the case. Having been in contact with his assistant and the juristic person at the condo he had seen a copy of the sales contract and had some idea about the details of the agreement to be made.

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But he had constantly stressed that he wanted a certain amount net after deducting taxes and fees to take home with him as he was planning to leave the country. What he did not know was that secretly his assistant was the one making the deal to sell the condominium; he had gotten in contact with an agent who found another foreign client who was interested. Usually in the case of property sale and purchase an agents commission is usually around 3 – 4% but as the secretary was the one negotiating the deal without the knowledge of the owner he wanted his own commission of 3%. This is fraud under Thai law.

           After being pressured to quickly agree to the deal by his assistant the owner signed the contract documents and then sent them back, the assistant used these to confirm the owner’s compliance and set the deal in motion. What the owner later discovered was that there would be specific business tax and income tax which would need to be paid to the amount of around one million Thai baht that wasn’t included in the deal. The buyer then transferred the deposit amount which was split in three between the agent, assistant and the owner. Not knowing who had taken his money or why the owner stopped the deal and wanted to know what was going on.

             After returning to the Kingdom of Thailand a meeting was setup and all parties were asked to attend except for the buyer as he was not in the country at the time. The agent who did not why the deal was stopped and what was going on was made to look like the wrong party who had stolen the money transferred from the buyer, but this was not the case. The agent was an innocent party and only took money which was rightfully theirs as it was commission from the sale. When we were asked to explain the details to them and fill them in we discovered that the secretary was the one in the wrong, he had no right to anything from the deal and from the emails there was incriminating evidence against found against him.

Thailand law

         Using this news the assistant was asked to return the money or charges would be pressed against him both by the buyer and the seller, the owner then made a new agreement with the agent and the buyer excluding the assistant and using his share to pay for the outstanding tax before the transfer could be complete. Whenever you want to make an agreement with anyone you should always keep evidence, sometimes emails, contracts or various other proof can help tie the other party to comply with their end of the bargain. By protecting yourself you will make sure that you will not lose a lot of time and money at the end of the story like the one from this case.

THAI LAW ,THAILAND LAW- Agents and Clients

THAI LAW - Amity Treaty between Thailand and the USA

THAI LAW - Amity Treaty between Thailand and the USA

 

Thai Law

   Thai law | The Amity treaty between Thailand and the U.S allows U.S citizens  to own more than 50% of the shares with a minimum of 50% of U.S directors in a limited company in Thailand. Under this agreement,  a company can be wholly owned by a citizen of the U.S.. Formally known as the Treaty of Amity and Economic Relations, the treaty was signed in nineteen sixty-six. The treaty grants American citizens and businesses incorporated in America the ability completely own a company in Thailand or to own the majority of shares enabling a U.S citizen to own and operate a company under the same rules as a Thai national.

Thailand law

The treaty has two distinct advantages for U.S traders; one being that it grants American companies a majority shareholding or full ownership of a company, branch office or a representative office that is within the Kingdom of Thailand. The other being that the treaty also enables an American company exemption from many of the restrictions put in place by the Alien Business Act of 1972 which has numerous limits on foreign investment. Companies that wish to apply using the benefits of this treaty  must have  50% or more of U.S. directors and have not less than of 51% percent shareholding owned by American citizens.

However, under Thai law, there are some restrictions which still apply such as not being able to operate in certain fields of business which are:

1. Communications

2. Transportation

3. Fiduciary functions

4. Banking involving depository functions

5. Exploitation of land and natural resources

6. Owning land

7. Domestic trade in agricultural products.

To set up a limited company in Thailand that under the treaty, there must be at least 3 million baht of registered capital, 25% of which has to be be paid up to show that the company is not set up for the sole purpose of obtaining work permits but that it is a legitimate business. If you have four registered Thai employees you will then be eligible to obtain one foreign work permit for your company. The entire process of forming such a company usually takes up to three months allowing for registration for VAT and Tax and approval from the Ministry of Commerce which, after receiving all the relevant paperwork can take up to 2 months.

Initial documents required include:

·      7 signed copies of the owner’s passport photo page and the current visa page.

·       Additional copies made for each shareholder.

·      The majority shareholder will be needs to give a copy of his U.S. passport, duly notarized.

·      If one or more shareholders are Thai then copies of their ID cards.

·      3 preferred names for the company in order of preference.

·      The business objectives.

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All of these documents are required for a successful application and to maintain your company as one that is registered under this treaty.

It is required to set up a Thai limited company first.  This company is then used to apply under the rules of the treaty.  It can be complex but not difficult if you know the procedure well.

The main benefit is that you will be able to own, or be a major shareholder of the company.

THAI LAW - Amity Treaty between Thailand and the USA

Thai Law | Death Penalty in Thailand

Thai Law | Death Penalty in Thailand

Thai Law

Thai Law | In Thailand we have a lot of criminal charges against the defendant for the death penalty, though they are mostly drug related offences regarding selling illegal substances or producing them in large amounts with intent to sell. As these are big crimes when the police come to arrest the defendant they will most likely resist arrest and try to escape often resulting in a police casualty due to firearms and/or other weapons. Another charge that invokes the death penalty is the hiring of a gunman to commit a planned murder of an individual, in almost all of these cases if the defendant gets arrested and the police and prosecutor can get a guilty verdict from the court, then the sentence from the court will then become a sentence to kill.

Thai Law

We understand that charges like these are serious but if these things happen to you, your friends, family or anyone you know, there exists non-profit NGO’s that can help take care of you and provide you with help. I have come to be the lawyer of one such organization by the name of Reprieve whose aim is to use the law to enforce the human rights of prisoners facing the death penalty or being held beyond the rule of the law. An NGO like Reprieve will help you by finding a refutable law firm or lawyer to help your case like myself and also to pay for the lawyer if they can support it. Other tasks include getting in contact with your family if you unable to because you are in jail and investigating your case to bring light to the facts and ensure a fair trial.

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They help us a lot with court processes such as finding evidence for the case such as proof from a school in the defendant’s home country of good moral character or say a previous place of employment to help strengthen your case. They will also assist and find witnesses that will aid your case and they will work together with us during court procedures to find a way to fight your case if you want.

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Our comment: Organizations such as Reprieve work very hard for defendants going the extra mile to secure each person’s right to a fair trial and in doing so saving lives. I have to say to everyone please don’t give up if you are charged with a death penalty crime, contact your friends, family or NGO’s like Reprieve to help take care of your case. Don’t leave it in the hands of a lawyer who sometimes doesn’t even understand one word of your language. Check, double check and triple check because you are the one who will receive the punishment. If you have your own case or any questions regarding Thai law please feel free to write in to us and we will answer any questions or concerns in this column.

Thai Law | Child Custody Revised

Thai Law | Child Custody Revised

Thai Law

           Thai Law |  This week’s I will share with you a coming change in Thailand’s child custody laws. For many years Thailand has suffered by not having a law that punishes a parent who shares custody of a child for improper care or not meeting the conditions of the custody agreement. Previously any parent that neglected their duties as a guardian was not subjected to any punishments by a court of law. This new provision of the Thai law which will come into effect on the twenty second of this month is aimed at ensuring the proper care of a child by insuring the parent meets the conditions set by the court or face the consequences.

Thailand Law

           If one side does not follow the court order with regards to the conditions of child care, then the new law will require that parent to proceed to a family court whereby a judge will ask them if they want to follow the courts order in regards to child custody or to ignore them. If the parent in question chooses to ignore their responsibilities as a parent and guardian then the judge will issue a jail term of fifteen days to the offending party. If after fifteen days the offender still chooses not to heed the court order then he will be returned to jail to serve a longer sentence. This enforcement of child custody law did not exist in years past and the Thai court hope that it will compel parents who share custody to fulfill their responsibilities to their children.

Thai Law

           As in our previous article regarding child custody there are requirements bestowed on each parent regarding a fifty-fifty custody split of a child. In Thailand the care and education of a child is considered paramount by the family court and as such the parent that takes care of the child’s education will have custody of the child on working days from Monday to Friday while the other parent will have custody weekends, school holidays will be split fifty-fifty between the two. A monthly payment of expenses is also required by the court with age being the factor that determines the amount necessary. For a child that is 1 – 10 years old 10,000 Baht is required, 10 – 15 years old 15,000 Baht and 15 – 20 years old 20,000 Baht, all of these payments will be split evenly between the two parents. Also when a child is in your custody you have to care for them personally, you cannot leave them in the care of a nanny or relative.

          Our comment: Any violation of the above conditions will bring the new law into action and the appropriate measures to be taken. This kind of law is present in western law systems for a long time already; it is good luck that this law is coming to pass here in Thailand as we have many problems enforcing the conditions of shared custody. Now we can use this law to enforce the judgment of the court and can resolve future disputes. If you have your own case or any questions regarding Thai law please feel free to write to us and we will answer any questions or concerns in this column.