Thailand’s Department of Business Development (DBD) has clarified that even after the amended Civil and Commercial Code (CCC) comes into effect on February 7, 2023, companies with articles of association pursuant to the previous CCC will still have to follow the previous requirements for publication of shareholders’ meeting notices.
The amended CCC removes the requirement for companies to publish a notice in a local newspaper when calling a general meeting of shareholders. Instead, companies can call a general meeting of shareholders either by sending a notice by post with acknowledgement of receipt to every shareholder whose name appears in the register of shareholders or by delivering the notice in person. However, the amended CCC still requires companies that have issued share certificates to bearers to publish a notice at least once in a local newspaper or via electronic means, as prescribed by the relevant ministerial regulations.
Notwithstanding these updated requirements, the DBD has issued a clarification explaining that the amended CCC coming into effect on February 7 will not usher in a blanket change to the way most companies are required to notify shareholders about a general shareholders’ meeting. If a company’s articles of association were made pursuant to a prior version of the CCC, that company will still need to publish a notice calling for a general meeting of shareholders in a local newspaper—even after the new amendment becomes effective.
If companies would like to change their practice so that they no longer have to publish this notice, they will need to amend their articles of association after the effective date of the amended CCC.
For more information on the new requirements of the amended CCC, or on any aspect of corporate laws and corporate governance in Thailand, please contact Prisna Sungwanna at [email protected], or Kobchai Nitungkorn at [email protected].