Voting Rights - Thai Company Shareholders
6 replies to this topic
Posted 2012-09-20 14:05:44
Apologies if this question is badly phrased, but I'm looking to understand legal technicalities of shareholder rights, and am just starting to try and get me head around issues.
Are there any circumstances under Thai law where shareholders need some sort of super majority vote for certain things to happen?
If anyone can outline these circumstances to me, I'd be grateful.
Posted 2012-09-20 14:55:29
Typically companies require a quorum (which is a predetermined number of shares) of shareholders that must be present on any voting to pass a motion before it can be accepted.
For example, many companies need a quorum of say 75% of shareholders to be present for voting on a motion to be passed. Even if only 51% vote it will still be accepted. However, if there are 51% of shareholders vote for a motion but less than the number present for their to be a quorom, then the motion will not pass despite a accepted by a majority of shareholders.
Edited by Time Traveller, 2012-09-20 14:56:17.
Posted 2012-09-20 15:17:17
Thanks for that.
But that sounds like something which would be mandated via articles of association rather than any legislation....which is reassuring.
Sounds like thouogh there is nothing statutory under Thai law which requires super majorities though?
Posted 2012-09-20 15:38:07
yes articles of association and company by-laws. Note that a quorum could actually be higher or lower than 50% and could be different for different matters such as in the case where a company would vote on a merger or liquidation.
I don't know of any specific legislation about this.
Posted 2012-09-21 20:45:57
Posted 2012-09-21 20:57:29
sunbelt - really good. Appriciate that.
Outlined things I had heard about - especially about 'special resoultions'.
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