Teleconference Meeting for Thai Companies
April 24, 2020
On 19 April 2020, Thai government enacted an Emergency Decree which allows cross-border teleconference for board of directors and shareholders meeting in Thai companies. This action is to ease the impact of COVID-19 towards business operators.
Five years ago, the Announcement of the National Council for Peace and Order No. 74/2557 (2014) re: Electronic Conferencing allowed for a board of directors or shareholders meeting of a company to be conducted via teleconference, however, subject to two practical limitations:
(i) at least one third of the quorum must physically attend the teleconference at the same venue; and
(ii) all of the teleconference attendees must be in Thailand when the teleconference is held.
These two restrictions (especially the last one) made cross-border teleconference impossible.
However, on 19 April 2020, the government enacted the Emergency Decree re: Electronic Conference B.E. 2563 which removes such two practical limitations with effective on and from 19 April 2020.
The Emergency Decree also allows a company to serve the notice of meeting to its shareholders and directors via electronic mail. However, the local newspaper publication for the shareholders meeting is still required.
Chairman of the meeting of the board of director or shareholders is the person to determine whether to conduct a meeting via teleconference method or not.
To become a permanent law, this Emergency Decree must be reconsidered and approved by the parliament of Thailand when the session of the parliament is reopened. If the Emergency Decree is rejected by the parliament, the previous law (with two practical limitations) will be in force again.