By The Nation
THAILAND is in the process of amending two key insolvency laws, Legal Execution Department director-general Ruenvadee Suwanmongkol said yesterday.
The first law is related to private receivers, while the other is on international bankruptcy cases.
In the insolvency context, receivers are persons who hold the property of others, including tangible and intangible assets and rights – especially in cases where a company cannot meet financial obligations or are bankrupt.
“Over the past four years, we have amended three insolvency laws and they are more in line with international principles now,” Ruenvadee said.
She was speaking at the 11th forum on Asian Insolvency Reform, which was held in Bangkok yesterday.
Representatives from the World Bank, various international organisations and 21 countries attended the forum to promote legal development. Wisit Wisitsora-at, permanent secretary at the Justice Ministry, said insolvency laws should be constantly updated to best respond to changing economic and social situations.
“The better the Thai insolvency laws, the greater the business opportunities for the country,” he said.
He said the world has responded positively to the Thai law on SME insolvency cases. This law allows a creditor to file a complaint with the relevant court first and then negotiate with debtors under court supervision.
Ruenvadee added that under this law, SMEs could also now undergo business rehabilitation and send and receive notices electronically.
Wisit said Thailand had consistently developed its insolvency laws, and that’s why it had a good image in the eyes of the international community.
MP Panadda Diskul, a vice minister officially attached to the Office of the Prime Minister and assigned to work with the Justice Minister, said King Rama IX’s Sufficiency Economy Philosophy was a crucial solution for insolvency problems.
“If one embraces sufficiency and leads a balanced life, one will be able to avoid insolvency,” he said.