THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
• a private limited company is managed by the directors in accordance with the resolution of the shareholders, its articles of association and the CCC; • a public limited company (listed and not listed) is managed by the directors in accord - ance with the resolution of the sharehold - ers, its articles of association and the Public Limited Companies Act; • a limited partnership and registered partner - ship are managed by the managing partners in accordance with the decision of the part - ners and the CCC; • a property fund is managed by a manage - ment company under the supervision of the mutual fund supervisor in accordance with the approved mutual fund project and the commitment made to the unitholders; and • a REIT is managed by a REIT manager in accordance with the trust instrument, as permitted by the Securities and Exchange Commission. 5.6 Annual Entity Maintenance and Accounting Compliance Accounting costs usually depend on the type of entity and the amount of the transaction. A private company limited is required to prepare an audited balance sheet, file corporate income tax returns, as well as file its latest shareholder list yearly. Furthermore, it must maintain and update a register of shareholders. A public company limited is required to hold an annual general meeting, prepare an audited balance sheet, file corporate income tax returns and file its latest shareholder list yearly. Further - more, it must maintain and update a register of shareholders. It is also required to publish the balance sheet in a newspaper.
Limited partnerships and registered ordinary partnerships must prepare and submit annual financial statements. Property funds and REITs must comply with Securities and Exchange Commission regula - tions. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time The law recognises the following arrangements. • Lease (as further described in 6.2 Types of Commercial Leases , 6.3 Regulation of Rents or Lease Terms , etc). • Usufruct – this provides the right to possess, manage and exploit a property. It can be either for the life of the grantee or a period of up to 30 years, with the possibility to renew it for up to another 30 years. The usufruct may also be transferred. However, the usufruct ends with the death of the original grantee. • Habitation – this is the right to occupy a building for either the life of the grantee or up to 30 years. Habitation can be renewed for up to 30 years. Habitation is not transferable. Unless otherwise prohibited, the grantee’s family may occupy the building with the grantee. • Superficies – this is a fully transferable right to own freehold title to a building on another person’s land. Superficies may either be granted for up to 30 years or for the life of the grantee. Superficies may also be renewed for another 30 years. Unless prohibited by the act creating it, a superficies is fully transfer - able by the grantee.
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