You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 27, 2020

Thailand Recommends Alternatives for Condominium Juristic Person AGMs during the COVID-19 Outbreak

Subscribe to Updates

According to Section 42/1 of the Condominium Act B.E. 2522 (1979), an annual general meeting (AGM) of joint owners in a condominium project must be held within 120 days from the end of its fiscal year, in order to approve, among other things, the balance sheet, annual report, and the appointment of an auditor.

As part of the government’s response to the COVID-19 pandemic, the Department of Lands issued a notification on March 23, 2020, recommending that condominium juristic persons (CJPs) proceed with AGMs as follows:

  • If the deadline for holding an AGM falls within the COVID-19 outbreak period, which is deemed an unavoidable situation, the AGM should be postponed until the situation returns to normal. In this circumstance, the CJP manager will be required to notify all the joint owners about the reasons for such postponement, and prepare the balance sheet and annual report, which will be published and disclosed to the joint owners in advance, so that they are ready for the AGM’s approval once the situation returns to normal; or
  • If the AGM cannot be postponed due to necessity, the CJP must encourage the joint owners to reduce the number of participants in the meeting by jointly appointing proxy holders to attend the AGM, in accordance with the Condominium Act, which rules that a proxy holder can represent up to three joint owners of condominium units. Alternatively, the AGM may be held electronically, as prescribed by the relevant laws governing electronic meetings.
Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

April 29, 2011
In certain jurisdictions, an escrow account system is required in order to protect the interests of the purchasers of properties. In an escrow arrangement, the buyer and the seller mutually agree to appoint a third party escrow agent, who will hold the seller’s documents and assets on the one hand, and, on the other, the buyer’s deposit or the whole purchase price. This involves a tri-party written agreement known as an escrow agreement. The escrow agent has a duty to ensure that the parties fulfill their obligations under both the purchase contract and the escrow agreement.
Read More
April 29, 2011
Registration of mortgage of immovable property is a popular method for creditors to obtain security for a debt, especially in instances of borrowing money from a bank, financial institution, or juristic person (a limited company). Until fairly recently, borrowers often faced difficulties in getting a loan from a juristic entity (both local and foreign companies), as well as a bank or financial institution other than those established and incorporated in Thailand.
Read More
April 29, 2011
Condominium ownership has become an increasingly popular method of investment in Thailand by foreign investors. When making the decision to purchase a condominium, however, it is necessary for foreigners to comply with several conditions under the Condominium Act B.E. 2522 (A.D. 1979). One issue that is frequently raised by foreign investors is what will happen to their condominium if they pass away. Given the broad range of conditions attached to condominium ownership, foreign investors are justified in wondering about the requirements that will apply to their successor.
Read More
April 28, 2011
On October 11, 2010, the Securities and Exchange Commission of Thailand (SEC) approved the regulatory framework for establishing real estate investment trusts (REITs) in Thailand. The evolution of real property financing in Thailand—from primarily bank loans to the rigid Property Fund for Public Offering (PFPO) to the proposed REIT—reflects the liberalization of the Thai market, the need for alternative funding options in the wake of the recovery of Thailand’s property sector, and the need for Thailand to maintain its regional competitiveness.
Read More