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 2, 2021

Thailand’s New Electronic Meeting Laws and Security Measures

Informed Counsel

The COVID-19 pandemic has resulted in a significant increase in the popularity of electronic meetings among businesses across the world, as physical meetings became unfeasible due to government lockdowns and regulations limiting gatherings to limit the risk of further spreading the disease. In Thailand, this turn of events has resulted in the promulgation of a new electronic meeting law to modernize rules that facilitate the convening of corporate entities’ statutory meetings as required under Thai law.

Electronic meetings in Thailand have been permitted to some degree since June 27, 2014, when the Announcement of the National Council for Peace and Order No. 74/2557 on Teleconferences through Electronic Means B.E. 2557 (2014) first allowed the practice, subject to various restrictions. However, many companies considered two strict requirements under this announcement to be impractical: at least one-third of the quorum for the electronic meeting had to physically attend the meeting at the designated meeting venue, which implies that no more than two-thirds of the quorum could choose to attend the meeting via electronic means; and all participants of the electronic meeting (whether attending electronically or in person) had to be physically present in Thailand at the time of the meeting, which effectively prohibited overseas participation.

New Rules for Electronic Meetings

The new electronic meeting law, the Royal Decree on Teleconferences through Electronic Means B.E. 2563 (2020), came into effect on April 19, 2020, replacing the 2014 order and relaxing its most onerous limitations in order to facilitate meetings of directors and shareholders via electronic means during the COVID-19 pandemic.

The key relaxations codified by the royal decree include allowing all attendees to attend meetings via electronic means, such as by phone or videoconferencing, from anywhere in the world. Furthermore, there is no longer a physical attendance requirement, and notices (and enclosures) calling a meeting can be distributed to participants via electronic mail, replacing the standard postal requirement of the 2014 announcement.

The new royal decree also needed to introduce certain statutory protocols in order to safeguard the integrity of the new meeting procedures. First, the meeting organizer must keep records of the meeting notice that is sent out electronically, and must verify the identities of the participants before the meeting starts. There must also be an audio or audiovisual record of the entire meeting (except for secret meetings), and the electronic traffic data of all attendees (i.e., the log file of usernames and login/logout dates and times) must be kept as evidence. Minutes of the meetings must also be documented, whether in an electronic or physical format.

Similar to the previous law, the new royal decree applies to board meetings and shareholders meetings of both private and public companies in Thailand, as well as to meetings of partnerships, trade associations, and chambers of commerce. Companies may choose to hold electronic meetings regardless of whether their articles of association have any provision specially permitting this. In addition, the standard rules and conditions for physical meetings still apply to electronic meetings, for instance, appointment of a proxy is allowed at a shareholders meeting but not at board meetings.

Security Measures for E-Meetings

To supplement the new royal decree, the Ministry of Digital Economy and Society (MDES) issued a new set of mandatory security standards for electronic meetings in its Notification Re: Standards for Maintaining Security of Meetings via Electronic Means B.E. 2563 (2020). The notification, which came into effect on May 26, 2020, outlines various mandatory security measures and procedures for electronic meetings. It also regulates the role and functions of the “conference control system” and the “system controller.” While the new royal decree already addressed security measures to some degree through its statutory protocols, the MDES notification added the following key requirements:

  • Method of identity check. The meeting organizer may adopt any secured method of identity verification, such as username and password or one-time password.
  • Two-way communication. The meeting must have sufficient bandwidth to provide a clear and continuous communication channel—whether via interactive audio or video communication—to allow participants to interact and express opinions to one another without interruption throughout the meeting.
  • Conference control system. The chair of the meeting (or the system controller) must have technological access to control or restrict, whether permanently or temporarily, the participation of attendees during the meeting in case of necessity or emergency.
  • Access to documents and data. Attendees must be able to access documents and data presented during the meeting.
  • Voting mechanism. The meeting must grant access to the technological tools to facilitate voting by the attendees, whether in the form of a general vote or a secret vote;
  • Storage of records. The meeting must keep records and data in connection with the meeting, including method of identity check, method and results of votes, audio or audiovisual recording (except for secret meetings), attendees’ electronic traffic data, and occurrence of disruptions during the meeting (if any).
  • Troubleshooting. Attendees must be able to report disruptions and errors that occur during the meeting, and the organizer must arrange for proper solutions and preventive measures.
  • IT security standards. The meeting must meet minimum IT security in terms of confidentiality, integrity, accessibility, privacy and protection of personal data, and other IT security measures.

It has become a general and convenient practice for electronic meetings to be conducted via free or paid conference applications or platforms, such as MS Teams, Zoom, Google Meet, and so on. The Electronic Transaction Development Agency (ETDA) is empowered to verify and certify whether the conference control systems have the technical capabilities or functions to comply with the security measures set out by the MDES notification on e-meeting security. To date, several conference control systems have voluntarily completed the ETDA’s self-assessment, but only a few have opted to apply with ETDA for its official certification. Both groups are published on the ETDA website at https://www.etda.or.th.

Meeting organizers from all Thai companies should familiarize themselves with these new laws and rules on electronic meetings and carefully choose a conference control system that both complies with the regulations and is compatible with their needs. Regardless of the platform chosen, the royal decree and the associated MDES notification have taken a much-needed, modernizing step that significantly eases the process of corporate operations in Thailand. These developments are an encouraging indication of Thailand’s intent to facilitate international business in the country, and a welcome innovation for shareholders and board members.

RELATED INSIGHTS​ 

August 7, 2023
Foreign investment in Vietnam continues to be encouraging. The latest figures reported by the Foreign Investment Agency for 2023 note that nearly USD 5.45 billion in newly registered capital, adjusted and contributed capital for purchasing shares, and capital contributions from foreign investors was recorded from January 1 to March 20, with realized capital from foreign investment projects estimated to exceed USD 4.3 billion. These statistics highlight the increasing attractiveness of Vietnam as an investment destination and reflect its robust economic growth. Sectors such as technology, media and telecommunications are expected to experience increased deal-making due to rapid digitalization. The automotive and industrial manufacturing sectors are likely to see divestments related to sustainability. Since 2015, Vietnam has implemented various measures to strengthen its legal framework and enhance the efficiency of market governance. This has resulted in improved government management in taxation, investment, competition and e-commerce. Tax loopholes on indirect transfers have been closed, stronger rules on investment and competition are leveling the playing field, and clear frameworks for e-commerce have been established. Key Legal Issues Business activities are categorized according to the Vietnam Standard Industrial Classification. These classifications determine the necessary licenses, permits and regulations for operating businesses, as well as guidelines for foreign investors looking to invest in specific sectors. Foreign investment restrictions, which are based on business activities, include limitations on foreign ownership, and conditions imposed on foreign investors such as shareholding or operations requirements. These restrictions are governed by both international treaties that Vietnam has signed and domestic laws. Some examples of foreign investment restrictions include the following: Foreign investors can only own up to 99.99% of the capital of an advertising business; Foreign-invested enterprises may only purchase buildings for their own use and cannot sublease them to others; Foreign owners of 100% foreign-owned banks must have
August 7, 2023
M&A transactions for private and public limited companies in Thailand can be achieved in many ways, including acquiring shares from existing shareholders of a limited company, subscribing to new shares issued by a limited company, an amalgamation of limited companies, acquiring all or part of the assets or business of a limited company, and a merger of private limited companies. The Civil and Commercial Code is the key legislation governing private limited companies, while public limited companies are mainly governed by the Public Limited Company Act of 1992, as amended, unless listed on the Stock Exchange of Thailand (SET), in which case the Securities and Exchange Act of 1992, the Securities and Exchange Commission (SEC) Rules, the Capital Market Supervisory Board (CMSB) Rules, and the SET Rules also apply. The legal framework for most M&A transactions concerning Thai limited companies is also provided in both the code and the Public Limited Company Act. New Type of Combination On 7 February 2023, the Act Amending the Civil and Commercial Code came into effect, introducing a new merger scheme as another approach to business combination for private limited companies. A merger under the amended Civil and Commercial Code is a merger of two or more companies, resulting in either a new company with all merged juristic entities ceasing to exist or one of the companies continuing to exist with the other companies ceasing to exist as juristic entities. The merger replaces the “amalgamation” in the previous version of the code, which merely prescribed a legal framework and identified the implications of mergers but did not specify a concrete legal framework for the acquisition of assets or businesses. Arguably, the first type of merger described above is the same as an amalgamation under the previous version of the code, while the end
July 28, 2023
Myanmar’s Ministry of Commerce (MOC) issued three notifications related to e-commerce on July 21, 2023, classifying online retail businesses as essential services, requiring them to register with the relevant authorities, and setting the criteria for their registration. Under Notification No. 49/2023 the MOC authorized the Department of Trade (DOT) to issue notifications, orders, and directives relating to online retail businesses. This was followed by Notification No. 50/2023, which classifies online retail businesses as essential services under the Essential Supplies and Services Law and requires them to register with the DOT within six months of the issuance of the notification (i.e., by January 21, 2024). Failure to register within the specified period will be punishable by imprisonment for six months to three years and a fine of up to MMK 500,000 (approx. USD 238). Finally, under Notification No. 51/2023, the MOC set out the criteria and requirements for the registration of online retail businesses by entities, business institutions, and individuals, as well as the duties and liabilities of sellers and consumers. Pursuant to this notification, registration should be completed via the DOT’s online system, fees must be paid digitally, and electronic registration certificates will be issued. Certificates are initially valid for two years, and can be renewed. The MOC will provide information at a later time on the prescribed forms, certificate format, registration and online fees, and online registration portal. In applying for registration, an entity or business institution established under the Myanmar Companies Law, Special Company Act, Co-operative Society Law, or any other existing Myanmar laws must have a website with its own domain name or an online channel with an exact address that is used for online sales and a registered business address within Myanmar. Individual applicants must be at least 18 years old, reside in Myanmar, and
June 5, 2023
Vietnam’s Law on the Protection of Consumer Rights (“Consumer Protection Law” or “CPL”) was passed in 2010 and has been effective since July 1, 2011, providing a legal framework for protecting the rights of consumers in Vietnam. Over the past 12 years of implementation and application, however, the CPL has revealed its shortcomings and limitations. For example, there are issues related to inconsistency between the CPL and other laws such as the Civil Code, Law on Competition, Enterprise Law, and Cybersecurity Law. The current CPL also has not kept pace with modern consumption practices, especially the rapid changes and emerging trends in e-commerce, cross-border transactions, and services via digital platforms. The government of Vietnam has therefore entrusted the Ministry of Industry and Trade (MOIT) to take the lead in drafting a new amended CPL to replace the old one, to improve the policies and legislation on consumer protection, and protect the vulnerabilities of consumers in transactions with businesses. During the 5th session of the National Assembly at the end of May 2023, the National Assembly discussed and reviewed the latest draft of the CPL (“Draft CPL”), which is expected to be approved on June 21, 2023. The following are some key contents of the Draft CPL: 1. Revised Subjects of Application Unlike the current CPL, which applies only to consumers; traders of goods and services; and agencies, organizations and individuals involved in consumer protection activities within the territory of Vietnam, the Draft CPL adds “the Vietnamese Fatherland Front, socio-political organizations and social organizations participating in protecting consumers’ interests” as new subjects of its application, and clarifies that “agencies, organizations, and individuals” include both domestic and offshore agencies, organizations, and individuals involved in activities of consumer rights protection. The Draft CPL also removes “within the territory of Vietnam” from the