Thai SEC is now conducting a public hearing for requirements on cryptocurrency investors

Thai SEC is now conducting a public hearing for requirements on cryptocurrency investors

Due to the drastic increase in the popularity of cryptocurrency (“crypto”) trading and the surge in crypto value in the past few months, the Thai Securities and Exchange Commission (SEC) is now conducting a public hearing to propose new regulations in regard to qualifications of crypto investors and knowledge test requirement.

The SEC views that crypto is a new digital asset as opposed to stocks, bonds or gold which are traditional assets and therefore, many crypto investors or traders especially young people need to have sufficient knowledge, trading experience and financial status prior to investing in crypto since its price is highly volatile. As such, it is necessary to implement a proper framework to protect the investors and safeguard the local economy.

The public hearing process is underway and expected to end on March 27, 2021. The main topics in the crypto public hearing process, are divided into two parts which are (1) qualifications for crypto investors and (2) knowledge test requirement. In order to be eligible to trade crypto, traders must meet any of the requirements:

1). Financial Requirements

  • Crypto investors must have an annual income over THB 1,000,000 (i.e., exceeding THB 83,000 on monthly salary), this does not include the annual income of the spouse; or
  • Have a net asset value worth over THB 10,000,000, this does not include the real estate value of the investor’s permanent residence; or
  • Have invested in securities, future contracts or digital assets with the port size of over THB 5,000,000 in value.

The above requirements, however, do not apply to investors who wish to invest in the stable coin.

2). Knowledge Requirements

  • Crypto investors must pass at least 80% in the knowledge test prior to investing in crypto; and
  • Must have at least 2 years of investment experience on crypto trading, securities or future contracts; or
  • Have obtained necessary training in finance and investment (e.g. CFA, CISA, CAIA or CFP).

The above requirements, however, do not apply to investors who open a trading account with digital asset fund manager.

3). Trading Requirement

  • The minimal value in a newly opened trading account must be at least THB 1,000.

For those that have failed to meet the above proposed requirements, but still wish to invest in crypto, they will be required to invest via a Digital Asset Fund Manager approved by the SEC who also needs to design and implement an appropriate knowledge test for the investors prior to trading. Overall, the new proposed requirements for crypto investors are rather controversial, especially the financial requirements. Proponents of crypto trading have argued that such hefty requirements will further disincentive crypto trading in Thailand and would cause unintended consequence which may divert Thai crypto investors to black markets or unregulated operators abroad instead.

This is the latest development on crypto trading framework in Thailand. We expect more news and updates in the near future and will keep you posted on the development. For further assistance, please contact: law@ilct.co.th.

By: Palawi Bunnag & Chart Chotiphol

 

 

 

Additional Conditions for Entering the Kingdom, Visa Regulations & Extension-of-Stay

Additional Conditions for Entering the Kingdom, Visa Regulations & Extension-of-Stay

 

1). Additional Conditions for Allowing Aircraft to Fly in and out of Thailand

On August 3, 2020, The Civil Aviation Authority of Thailand (“CAAT”) had made an additional announcement regarding Conditions for Allowing Aircraft to Fly in and out of Thailand (No.3). The new announcement includes new category of persons that will be allowed to enter Thailand, these include the following:

  • Aliens with Thai residence certificate, including their spouse and children;
  • Non-Thai nationals with a work permit, including their spouse and children;
  • Foreign workers whose employers or agents were granted permission by the Thai government to bring foreign workers to temporarily work and stay in Thailand;
  • Non-Thai nationals under a special arrangement between the Thai government and foreign countries;
  • Special individuals or groups under the recommendation of the ad hoc committee and approved by the Prime Minister.

Nonetheless, all persons entering Thailand must still comply with COVID-19 Public Health Countermeasure’s Regulations and shall be subject to a 14-day state required quarantine or alternative state quarantine (ASQ) at their own expenses.

2). Visa Regulations & Extension-of-Stay

The Thai Immigration Bureau had also made an announcement regarding Thailand’s visa regulations and condition for extension-of-stay for visa holders during COVID-19 Public Health Countermeasure, they are as listed below.

A). For Short-Term Visa

This includes Tourist Visa (TR), Transit Visa (TS), Visa-on-Arrival (VOA) and those with Visa exemptions. Those holding the visa types as listed must prepare to depart Thailand no later than September 26, 2020. With this being said, those with the following reasons will be eligible to apply for a 30-day extension-of-stay per permission:

  • Those suffering from illnesses – A valid medical certificate must be provided to a local immigration office;
  • Other reasons such as: no available departing flights or destination country undergoing outbreak restriction/containment protocol – A letter of confirmation from an embassy or consulate must be provided to a local immigration office.

B). For Long-Term Visa

Holders of long-term visa must submit an application for visa extension in accordance to their respective visa types. The application for visa extension may be submitted from now until September 26, 2020 (last day). The extension will be effective from September 27, 2020 onwards.

C). Notification of Residence

House owners, heads of household, landlords or managers of hotels (e.g. Airbnb, B&B and hostel) that accommodate foreign nationals on a temporary basis must notify the local immigration authorities within 24 hours from the time of arrival of the foreign national.

Moreover, any foreign nationals who have been granted the temporary permission to stay in Thailand on long term non-immigrant visa must notify his/her residence to the immigration officer every 90 days. Foreign nationals under this category with a notification deadline falling between March 26, 2020 – July 31, 2020 must notify the immigration officer no later than August 31, 2020.

 

Thailand Signboard Tax

Thailand Signboard Tax

 

Thailand Signboard Tax Act B.E. 2510 (1967) (“STA”) stipulated that any signboard/signage (“Signboard”) for advertisement purposes (i.e. signage displaying name, brand or trademark) shall be subjected to tax collection.  Under the STA, Signboard owner is responsible for paying the tax. However, if the owner cannot be identified for any reasons, the tenant or the land/building owner where the signboard is located shall be responsible for the said tax payment.

With this being said, signage located on product, packaging, human or animal are exempted. Signboard displayed on a private property and not exceeding the allowed size is exempted. Additionally, Signboard belonging to governmental authorities, temples and charitable foundations are also exempted from the tax payment under the STA.

In July 2020, the Thai cabinet has approved an amendment to the Ministerial Regulations No. 5 (B.E. 2535) (1992) further adjusting the Signboard tax rate.  Moreover, the new amendment also includes a tax collection scheme for mechanical sign, moving text sign and electronic sign (“Animated Signboard”) that advertise more than one images within a one-minute timeframe. The new tax rate will become effective on January 1, 2021 and shall continue till December 31, 2023. The new rates are as stipulated below.

1). Long-term Signboard (Annual Tax Payment)

Long-term Signboard means any signboard/signage displaying text, symbol or picture for longer than 12 months (excluding Animated Signboard), Signboard in this category will be subjected to annual tax payment as follows:

  • Signboard with Thai language only – THB 5 per 500 cm²
  • Signboard with a combination of Thai/foreign languages and/or pictures/markings – THB 26 per 500 cm²
  • Non-Thai Signboard – THB 50 per 500 cm²
  • Foreign language Signboard with Thai located below the foreign language portion – THB 40 per 500 cm²

2). Short-term Signboard (One-time Tax Payment)

Short-term Signboard means any signboard/signage displaying text, symbol or picture for less than 12 months (including Animated Signboard), Signboard in this category will be subjected to a one-time tax payment as follows:

  • Signboard displayed for less than 3 months – THB 1,010 per 1 m²
  • Signboard displayed for no less than 3 months but not exceeding 6 months – THB 1,020 per 1 m²
  • Signboard displayed for no less than 6 months but not exceeding 9 months – THB 1,030 per 1 m²
  • Signboard displayed for more than 9 months – THB 1,040 per 1 m²
  • Any Signboard with a tax valuation under THB 1,010 shall pay a fixed rate of THB 1,010 per sign

Signboard owner or tenant are obligated to pay the tax within March of every year. In the event of new installation or modification of the Signboard, the owner/tenant is obligated to file a tax return within 15 days from the completion of the new Signboard. Failure to comply with the STA or pay the stipulated Signboard tax may be fined, imprisoned or both. Overall, owner or tenant are encouraged to comply with the STA to avoid any unnecessary punishments.

 

มาตรฐานการรักษาความมั่นคงปลอดภัยของการประชุมผ่านสื่ออิเล็กทรอนิกส์

มาตรฐานการรักษาความมั่นคงปลอดภัยของการประชุมผ่านสื่ออิเล็กทรอนิกส์

สืบเนื่องจากการที่พระราชกำหนดว่าด้วยการประชุมผ่านสื่ออิเล็กทรอนิกส์ พ.ศ. 2563 ซึ่งถูกประกาศใช้ตั้งแต่วันที่ 19 เมษายน 2563 เป็นต้นมา ได้กำหนดให้การประชุมผ่านสื่ออิเล็กทรอนิกส์ต้องเป็นไปตามมาตรฐานการรักษาความมั่นคงปลอดภัยที่กระทรวงดิจิทัลเพื่อเศรษฐกิจและสังคมกำหนด

ด้วยเหตุนี้ กระทรวงดิจิทัลเพื่อเศรษฐกิจและสังคมจึงได้ออกประกาศเรื่อง มาตรฐานการรักษาความมั่นคงปลอดภัยของการประชุมผ่านสื่ออิเล็กทรอนิกส์ พ.ศ. 2563 โดยให้มีผลบังคับใช้ตั้งแต่วันที่ 27 พฤษภาคม 2563 เป็นต้นไป สาระสำคัญของประกาศดังกล่าวสามารถสรุปได้ดังนี้

ในการประชุมผ่านสื่ออิเล็กทรอนิกส์ ผู้มีหน้าที่จัดการประชุมต้องจัดให้มีกระบวนการดังต่อไปนี้เป็นอย่างน้อย

  • การแสดงตนของผู้ร่วมประชุมผ่านสื่ออิเล็กทรอนิกส์ก่อนการประชุมจะต้องมีความมั่นคงและรัดกุมตามความเหมาะสมกับการประชุม
  • การสื่อสารหรือมีปฏิสัมพันธ์กันได้ด้วยเสียง หรือทั้งเสียงและภาพ จะต้องเชื่อมโยงผู้ร่วมประชุมที่มิได้อยู่ในสถานที่เดียวกันให้สามารถประชุมปรึกษาหารือและแสดงความคิดเห็นระหว่างกันได้ผ่านสื่ออิเล็กทรอนิกส์ได้ในเวลาเดียวกัน
  • ผู้มีหน้าที่จัดการประชุมต้องจัดส่งเอกสารประกอบการประชุมของผู้ร่วมประชุมให้ให้แก่ผู้ร่วมประชุมก่อนหรือในระหว่างประชุม
  • การลงคะแนนของผู้ร่วมประชุมต้องเป็นไปตามวิธีการที่กำหนดในประกาศนี้
  • การจัดเก็บข้อมูลหรือหลักฐานที่เกี่ยวข้องกับการประชุมผ่านสื่ออิเล็กทรอนิกส์ ซึ่งรวมถึงการบันทึกเสียง หรือทั้งเสียงและภาพของผู้ร่วมประชุมทุกคนตลอดระยะเวลาที่มีการประชุม (เว้นแต่เป็นการประชุมลับ) จะต้องถูกบันทึกในรูปข้อมูลอิเล็กทรอนิกส์และเก็บรักษาด้วยวิธีการที่มีความมั่นคงปลอดภัยและด้วยวิธีการที่เชื่อถือได้
  • การจัดเก็บข้อมูลจราจรอิเล็กทรอนิกส์ของผู้ร่วมประชุมทุกคนไว้เป็นหลักฐานจะต้องเป็นไปตามวิธีการที่ประกาศฉบับนี้กำหนด
  • การแจ้งเหตุขัดข้องในระหว่างการประชุม ให้ผู้มีหน้าที่จัดการประชุมจัดเตรียมช่องทางการแจ้งเหตุขัดข้อง เพื่อรองรับการแก้ไขเหตุขัดข้องที่เกิดขึ้นในระหว่างการประชุม

นอกจากกระบวนการข้างต้นแล้ว การประชุมผ่านสื่ออิเล็กทรอนิกส์จะต้องมีมาตรฐานการรักษาความมั่นคงปลอดภัยด้านสารสนเทศในเรื่องดังนี้เป็นอย่างน้อย

  • การรักษาความลับ (confidentiality)
  • การรักษาความครบถ้วน (integrity)
  • การรักษาสภาพพร้อมใช้งาน (availability)
  • การรักษาความเป็นส่วนตัวและการคุ้มครองข้อมูลส่วนบุคคล
  • คุณสมบัติอื่น ๆ ได้แก่ ความถูกต้องแท้จริง (authenticity) ความรับผิด (accountability) การห้ามปฏิเสธความรับผิด (non-repudiation) และความน่าเชื่อถือ (reliability) ของข้อมูลอิเล็กทรอนิกส์ที่เกี่ยวข้องหรือเกิดจากการประชุม

ในกรณีที่เป็นการประชุมในเรื่องลับ ประกาศฉบับนี้ยังได้กำหนดมาตรการรักษาความมั่นคงปลอดภัยเพิ่มเติมเพื่อป้องกันมิให้บุคคลที่ไม่มีสิทธิร่วมประชุมรู้หรือล่วงรู้ถึงข้อมูลเกี่ยวกับการประชุมอีกด้วย

นอกจากมาตรการที่สรุปไว้ข้างต้น ประกาศฉบับนี้ยังได้ให้อำนาจสำนักงานพัฒนาธุรกรรมทางอิเล็กทรอนิกส์ในการกำหนดมาตรฐานการรักษาความมั่นคงปลอดภัยด้านสารสนเทศของระบบควบคุมการประชุมเพิ่มเติมได้หากเห็นสมควร อีกทั้งยังให้อำนาจหน่วยงานดังกล่าวเข้าตรวจประเมินและรับรองระบบควบคุมการประชุมผ่านสื่ออิเล็กทรอนิกส์ให้เป็นไปตามมาตรฐานที่กำหนดในประกาศนี้ ดังนั้น นิติบุคคลที่ประสงค์จะจัดการประชุมผ่านสื่ออิเล็กทรอนิกส์จึงควรติดตามประกาศจากหน่วยงานที่เกี่ยวข้องอย่างใกล้ชิดเพื่อให้สามารถจัดเตรียมการประชุมได้ถูกต้องครบถ้วนตามวิธีการและมาตรฐานที่กฎหมายกำหนด

 

 

 

Announcement for holding the AGM via a video conference

Announcement for holding the AGM via a video conference

Due to the previous impracticality of the Announcement of the National Council for Peace and Order No. 74/2557 on Electronic Media Conference, B.E. 2557 (2014), which stated the following restrictions:

  1. 1/3 of the quorum must be presence in the same place, which was found to be conflicting with the current social distancing guideline imposed by the Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005) and Communicable Diseases Act B.E. 2558 (2015) along with the WHO’s health guideline; and
  2. The previous requirement that all participants/attendees must be in the Kingdom at the same time.

The above restrictions were found to be impractical and leaving many businesses to postpone their annual general meeting (AGM) indefinitely.

To resolve this issue, the Thai government had made an additional announcement on the Emergency Decree on Electronic Media Conference, B.E. 2563 (2020) which came to effect on April 19, 2020. The new announcement effectively lifted the previously mentioned (1) and (2) restrictions. Under this new regulation, 1/3 of quorum no longer needs to be in the same venue nor within the Kingdom during the AGM. Hence, connection via video conferencing without having to meet the required quorum will now be considered valid.

Nonetheless, corporate entities must comply with the Announcement of the Ministry of Information and Communication Technology on Security Standards for Electronic Media Conference, B.E. 2557 (2014), in regard to the security standards for electronic media conference such as:

  • There must be a sufficient identification, verification and authorization protocol for the participants/attendees;
  • Record all audio and visual content of the meeting (except confidential matters);
  • Record all video traffic information of the meeting.

For now, corporate entities wishing to hold the AGM via video conference may refer to the guideline issued by the Ministry of Digital Economy and Society, which can be downloaded via this link (http://dmsic.moph.go.th/index/detail/8076).

Thailand Immigration Rules during COVID-19

Thailand Immigration Rules during COVID-19

Extension for Thai Permanent Residency, Visa-on-Arrival, Long-term Visa and Temporary Border Pass during COVID-19 State of Emergency

Due to the enactment of “Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005) (“EPAES”) which took effect from March 26, 2020. Travel restrictions were implemented to control the spread of COVID-19.

The previous announcement issued on April 7, 2020 stated that Thai permanent residency (“PR”), visa-on-arrival (“VOA”), long-term visa and Temporary Border Pass (“TBP”) holders were allowed a grace-period of stay until the end of April 2020. However, due to the ongoing crisis, a new notification from the Ministry of Interior Re: Permission issued on April 21, 2020 had furthered extended the previous grace period.

This newsletter will cover the new extension and exemption regulations for Thai permanent residency (“PR”), visa-on-arrival (“VOA”), long-term visa and Temporary Border Pass (“TBP”) holders.

Thai Permanent Residency (PR)

Under Thailand’s Immigration Act B.E. 2522 (1979), those who have been issued a PR permit (a blue book) can reside permanently in Thailand, with no need to apply for an extension of stay. If the holder wishes to leave the country, he/she must apply for a notification of leave that is valid for 1 year.

In the event that the holder cannot return to Thailand within the 1-year period (i.e. before the notification of leave expires), he/she is allowed an extension until COVID-19 pandemic has been resolved and the travel restrictions have been lifted. To this end, the holder must report to the immigration officer once he/she had returned to Thailand.

Visa-on-Arrival (VOA) & Long-term visa

Visitors with visa-on-arrival (VOA) and long-term visa may reside in Thailand until July 31, 2020. The Thai Immigration Bureau also waived the 90 days requirement to report his/her residential address to the immigration officer. There will be no additional fees or documents to be submitted to the Thai authority.

Temporary Border Pass (TBP)

Those who have been issued a TBP will be allowed to reside in Thailand until the Thai border has re-opened. Nonetheless, the TBP holder must leave Thailand within 7 days from the border reopening date, all overstay fees will be waived.

Entry Rules

Due to the enactment of the EPAES, special regulations were implemented for those that wishes to enter Thailand, the regulations are as follow.

1). Entry by Air Travel

Eligible for: Exempt individuals/professions, logistic providers, aircraft/transport personnel, diplomats, state officials, foreigners with working permit and Thai citizen.

 

  • Contact Thai Ministry of Foreign Affairs or Thai Embassy before departure
  • Prepare the following documents
    • Medical certificate (fit-to-fly), valid for 72 hours from issuance
    • Thai Embassy verification certificate
    • Thai Ministry of Foreign Affairs verification certificate
  • Temperature checks (under 37.3 °C)
  • On arrival in Thailand, download and register “AOT Airport Application”
  • Subject to mandatory 14 days state quarantine

2). Required Documents

 

 

 

 

 

Court of First Instance Proceeding Postponement

Court of First Instance Proceeding Postponement

As an effort to slow down the spread of Covid-19, Thailand Office of Judicial Administration Commission (“JAC”) has implemented new rules and regulations for Thailand’s Court of First Instance proceedings. These changes are designed to reduce necessary gathering in compliance with social-distancing rules, as well as, Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005) (“EPAES”) and Communicable Diseases Act B.E. 2558 (2015) (“CDA”). The changes to court proceedings are as below.

1). Special Proceeding Cases

Period: March 24 – May 31, 2020

All related proceedings, discoveries, hearings or trials scheduled during the stated period will be postponed and appointed a new date. With this being said, exemption cases are the following:

  1. Criminal cases, that the defendant is incarcerated during the proceeding, such as: witness examination in a guilty plea and evidence examination;
  2. Civil cases, such as: appointment of guardianship, appointment of an estate manager or declaration of a missing person;
  3. Other cases, where:
    • The plaintiff and court agreed that it is appropriate and safe to proceed;
    • A postponement may adversely affect either parties, and that the consents from both parties are required in order to proceed.

Despite the above exemptions, the court may decide to postpone if the number of participants exceed an appropriate limit.

2). Ordinary and Special Cases

Period: March 24 – May 31, 2020

All related proceedings, discoveries, hearings or trials scheduled during the stated period will be postponed and appointed a new date. With exemption cases as the following:

  1. Criminal cases where the defendant is incarcerated during the proceeding;
  2. Other cases where:
    • The litigant wishes to proceed with the discovery;
    • The court deemed appropriate and safe to proceed;
    • That a postponement may adversely affect either parties.

Regardless, the court may decide to postpone if the number of participants exceed an appropriate limit.

3). Filing of Complaint, Deference of Criminal case, Requesting Court Order, Imprisonment and Bail

Requests for any actions above and other related actions will continue as usual. However, there is likely to be a change in operation hours due to the social distancing guideline.

Overall, in consideration of the on-going effort to reduce the spread of COVID-19, relates parties should consider whether the court proceeding is avoidable. If this is the case, it would be best to postpone the proceeding to a later date. If you have further question or need any assistance, please contact us at law@ilct.co.th.

Annual General Meeting (AGM) during COVID-19 Pandemic

Annual General Meeting (AGM) during COVID-19 Pandemic

In the usual circumstances, Thailand’s Annual General Meeting (“AGM”) is required to be held within 4 months from the end of the company’s fiscal year as per the , Thailand Civil and Commercial Code (“CCC”).

In light of the ongoing COVID-19 outbreak the recent announcements issued under the Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005) (“EPAES”) and Communicable Diseases Act B.E. 2558 (2015) (“CDA”) have caused postponement to the routinely held AGM so that the latest COVID-19 preventative protocols are to be complied with by everyone

This article will provide FAQs regarding AGM arrangement for both Public Company Limited and Private Company Limited.

Should AGM be postponed?

Short answer is “YES”. Due to the enactment of the EPAES, many public venues are ordered to be closed, as well as, restrictions on large public gathering. These two regulations alone justify the postponement of a large public gathering such as the AGM. The EPAES is effective national wide, meaning that it applied to all AGM scheduled to be held in other provinces (beside Bangkok metropolitan). Thailand Department of Business Development (“DBD”) and Thailand Ministry of Commerce(“MOC”) have confirmed that the AGM can be postponed to a later date (after COVID-19 outbreak subsided) by submitting a letter to the DBD’s registrar after the AGM has been held.

Under this new regulation, companies are required to notify the shareholders of the AGM postponement either via typical announcement, online announcement or SETLink. Moreover, holding the AGM via electronic conference should be avoided as there are certain conflicting regulations (i.e. 1/3 of the quorum is required to be in the same place) that may violate the EPAES or CDA. Overall, AGM postponement is recommended.

AGM Important Requirements

With this being said, the AGM will still have to comply with the rules and regulations set forth by the TCCC, which are:

 

  • Consider and approve the previous minutes of shareholders’ meeting;
  • Consider the company’s operating results of the previous year;
  • Consider and approve the audited annual financial statements;
  • Consider and approve the distribution of dividends
  • Consider and approve the appointment of directors whose term expires by rotation;
  • Consider and approve the remuneration of directors;
  • Consider and approve the appointment of external auditor and auditing fee;
  • In case there are other significant agendas, the company must ensure the information provided to shareholders is sufficient and complete.

Special Requirements (if any):

 

  • Annual dividend may be changed into interim dividend payment with the approval and announcement from the Board of Directors. The dividend must be distributed within 1 month from the approval date;
  • Election/rotation of the Board of Directors may be postponed until the COVID-19 outbreak has ended and the AGM has been held, the current Board of Directors may retain the position until then;
  • Companies may appoint a new or retain the current external auditors approved by the Securities and Exchange Commission (“SEC”) until the COVID-19 outbreak has ended and the AGM has been held. New appointment of an external auditor should be proposed for approval at the AGM.

Document Submission Deadlines

List of Shareholders:

 

  • For Private Company Limited – 14 days from the new AGM date
  • For Public Company Limited – 1 month from the new AGM date

Annual Financial Statements:

 

  • 1 month from the new AGM date

Submission Route:

Due to the current COVID-19 protocol, all related documents should be submitted via DBD e-Filing portal (http://efiling.dbd.go.th/). Nonetheless, companies should also keep paper copies for backup purposes.

For further assistance on AGM related rules and regulations during COVID-19 outbreak, please contact us at law@ilct.co.th.

 

 

Protocol for Listed Company during COVID-19

Protocol for Listed Company during COVID-19

 

Due to the on-going COVID-19 crisis which has affected the upcoming annual general meeting (AGM). The Thai Securities and Exchange Commission (“SEC”) had announced a few changes to the related regulations for the listed companies as set out below.

Regulation Changes:

  • Temporary appointment of an external auditor – A listed company may appoint a temporary external auditor without holding an AGM. In this instance, the Board of Directors can select an external auditor approved by the SEC or allow the previous external auditor to audit the financial statements for the 1st quarter of 2020.  Once the AGM can be held, the usual appointment of the external auditor shall then be officially proposed for the shareholders’ approval.
  • Submission of reports concerning the financial condition and the business operation – Taken effect from March 31, 2020, the SEC has allowed an extension of the deadline for the submission of (1) quarterly financial statements (2) annual financial statements and (3) annual registration statement with an ending period from January 1, 2020 – May 31, 2020. To be eligible for an extension, the company must:
    • Submit a request for an extension to the SEC Office before the due date of such period along with explanations (COVID-19 impacts) and proposed the new submission date of the reports.
    • The company must make an extension announcement via SETLink or other medium that the shareholders can access.
  • Financial statements extension period – If granted an extension, the new timeframes are as follows:
    • Submission of quarterly financial statements must not exceed the end period of the next quarterly statements;
    • Submission of annual financial statements and annual registration statements must not exceed 4 months from the end of the fiscal year.
  • Dividend payment – In the absence of an AGM, the Board of Directors may approve the dividend in the form of an interim dividend payment instead. For dividend payment in the form of an asset or share, the company must still undergo a normal AGM process and obtain shareholders’ approval, thus payment of dividend in this form is not advisable until an AGM can be held.
  • Shareholders announcement – The company is required to keep shareholders updated on any change to the regulations and rules during COVID-19 outbreak (i.e. AGM postponement). Related announcements should be posted on SETLink.

For further assistance on Thai company registration process during COVID-19 outbreak, please contact us at law@ilct.co.th.

 

For further assistance on Thai company registration process during COVID-19 outbreak, please contact us at law@ilct.co.th.

 

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