Thailand: Dividend Payment of the Thai Limited Company
On April 4, 2017, the Head of the Board of National Council for Peace and Order (“NCPO”) issued Order No. 21/2560 (2017) (the “Order”). The aim of the Order is to facilitate the ease of doing business in Thailand and by doing so, certain amendments to the following laws are in place, with immediate effect, the Civil and Commercial Code, Labour Protection Act, Public Limited Company Act, Social Security Act and Bankruptcy Act. One of the more significant amendments is to \Section 1201 of the Civil and Commercial Code (“CCC”):
- Section 1201 - Dividend Payment: A dividend payment may be made to shareholders upon completing one of the following conditions: (i) obtain a resolution from a general meeting of shareholders; or (ii) an approval from the board of director for an interim dividend payment. The new amended CCC has stipulated the regulatory period for a dividend payment, is within one month after the date of shareholders’ resolution in (i) or the board’s approval in (ii). Prior to the Order, there was no statutory deadline for payment of a declared dividend stipulated in the CCC.
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