Director Liability of Limited Company

In Thailand and under Thai law, any business undertaken by a director of the limited company in his or her duties, in general the directors are not personally liable, except for any business that the directors without power or outside the scope of the company’s power or business and the company did not provide a ratification on such actions, the director may be personally liable to the outsiders.

    According to the law, the directors of the limited company is responsible for managing the work of the company with the same care that all business people are aware of. The company or shareholders of the company have the right to initiate the legal proceeding against the directors to compensate the company if it appears that the directors do not exercise caution with a negligence causing damage to the company's business, then the directors shall be responsible for such damage. However, all liabilities of the director may occur only when the director intends or negligent and causes damage to the company.

    Moreover, the director’s liabilities are an individual matter, however there are some cases where the law states that the directors shall jointly responsible and liable for such matters. Being a director of the limited company comes with the advantages and risks in which a person who wish to be in this position shall be accountable for it. Avanta & Co consists of experienced lawyers who are expert in these corporate and commercial practice areas and capable to provide you consultation and assistance.

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