Share Premiums and Issuance of Shares in Thailand

by admin on January 23, 2014

Thailand company law is similar to the company law of other nations. The capital of a limited company is divided in shares with a “nominal” or “par value” for each share based on the initial capitalization of the company. Company investors may however seek to issue shares for a par value which is lesser or greater than the actual capital contribution.

Under Section 1105 of the Thailand Civil and Commercial Code Chapter IV (Limited Companies Law Code) shares may not be issued at a lower price than their nominal amount.

Under Thailand business law, the issue of shares at a higher price than their nominal amount however is allowed under section 1106, if it is expressly stated in the Company memorandum. In such case the excess amount must be paid along with the first payment.

The first payment on the shares must not be less than twenty-five per cent of their nominal amount.


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