Thailand’s Office of Insurance Commission (OIC) has issued a notification announcing new and updated criteria for the approval of capital reductions for both life and non-life insurance companies. The notification was published in the Government Gazette on March 6, 2024. These updates aim to reduce the time required and relax and streamline the procedures for seeking OIC approval for capital reductions. Under the notification, general approval will be granted by the OIC upon submission of an application to the registrar if the capital reduction is to be implemented by way of: Removing registered shares that cannot be sold or that have not yet been issued for sale; or Reducing the share value or the number of shares to mitigate the accumulated loss. The reduction must not affect the share ratio of the shareholders in the financial statement and must comply with relevant laws, regulations, and accounting standards. After granting written approval, the registrar will notify the OIC to arrange for registration by the company. For more details on the OIC’s notification regarding capital reductions for life and non-life insurance companies, or for any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].

The Thai government has released an updated draft Liability for Defective Goods Act after the Office of the Consumer Protection Board completed its second round of public hearings on the law in December 2023. The draft law sets out a new liability regime for different types of goods, and is being drafted in response to concerns over inadequate protection for buyers and the current lack of clear liability regulations for defective goods. Key Points in the Draft Act The latest draft introduces new and broader definitions for “seller” and “buyer,” which replace “business operator” and “consumer” as defined in the previous draft. The act will apply to and govern hire-purchase contracts and sales contracts and will have retroactive effect on agreements that were made before the act’s effective date. The draft’s new liability regime has the following characteristics: Liability provisions are specified for different categories of goods while excluding used products and living animals. Sellers are presumed to be at fault for defects that exist at the time of delivery, with specific timelines and conditions for (1) automobiles and motorcycles; (2) electrical appliances, electronic devices, and mechanical devices; and (3) other products. Agreements made before the discovery of a defect are deemed void if they conflict with the act or unfairly burden buyers. The latest draft also sets new prescription periods: For the “other products” category, the prescription period is one year from the discovery of a defect or from the seller’s agreement to repair, replace, or reduce the sale price. For the “automobiles and motorcycles” and “electrical appliances, electronic devices, and mechanical devices” categories, the prescription period is two years under similar conditions. Now that the draft Liability for Defective Goods Act has passed the public hearing stage, its potential impact on the public is being assessed further

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.