Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal.co.th - Resources 

Research & gain insights into Thai, American, and International Law.

 

Contact us: +66 2-266 3698

info@integrity-legal.com

ResourcesCorporate and Tax AdvisoryThailand Corporate LawPros and Cons of Singular vs Multiple Corporate Directors in Thailand

Pros and Cons of Singular vs Multiple Corporate Directors in Thailand

Transcript of the above video:

As the title to this video suggests we are going to be discussing Corporate Directors, Corporate Directorships, here in the Kingdom of Thailand; specifically on Limited Companies here in the Kingdom.

Well what we talking about? Why are we saying Pros and Cons of Singular vs. Multiple Directorships? Well mostly you are going to see this in the context of small businesses.  I especially see this with small farang or foreign businesses, that are being run here in the Kingdom and basically you will often see where it is almost just sort of a “one-man band”, for lack of a better term, where it's basically somebody who is coming here to set up a small business to support themselves in the Kingdom and work but they really don't have a large staff; it's a fairly small enterprise. Under these circumstances the debate does kind of come up as to whether or not one or more directors is optimal. At first glance, those who do business here in the Kingdom sort of say: “well it is my company”, especially under Amity, I see this with a lot of Americans, they sort of say "it's my company. I am the main shareholder and I want to be the singular director". The major downside with singular directorships is the fact that rather mundane tasks, corporate tasks, sometimes require either a director meeting or a shareholder meeting. Well in a one director company, a director meeting isn't possible for some of these things. Don't get me wrong there are certain things that are statutorily prescribed  to only utilize shareholder meetings but there are others that it can be either or, or sometimes there are things that it can just be a director meeting under certain circumstances. 

Basically what I'm trying to get at is director meetings can be a little bit more streamlined of a process to undertake the formalities necessary to hold one and to go ahead and get the requisite authorization associated with a director meeting when compared to a shareholder meeting. So depending on how the company is set up, Director meetings maybe more optimal compared to Shareholder meetings but that being said just going to depend on the circumstances of the given company but it is food for thought for those who are looking to doing business here in the Kingdom.

Again some things that at first glance may seem sort of almost self-evident, like "I just want to be the sole director of the company", there actually could be some downsides with respect to that. There could be most notably again, things that are rather mundane, mundane corporate activities with a singular directorship may require a shareholder meeting which again is going to be more time consuming, it is going to require more formalities as opposed to a director meeting which kind of in certain cases, not all cases, is a more streamlined process.