ภาษาไทยShort answer: In a Thai limited company, dividends are declared by general meeting resolution (or as interim dividends by the directors), may be paid only from profits, and must be paid within one month of the resolution. Unpaid dividends alone do not prove fraud; diverting profits out of the company is a different matter.
See the main guide: Business Partner Fraud in Thailand.
Dividend rules
| Rule | Content |
|---|---|
| Who declares | General meeting; directors may pay interim dividends when profits justify it |
| Source | Profits only; losses must first be made good |
| Timing | Within one month of the resolution |
| Reserve | At least 1/20 of profits each time until 1/10 of capital |
| Director duty | Directors are jointly responsible for lawful dividend distribution |
The right to dividends is personal to each shareholder.
Warning signs
- Persistent losses despite strong sales: especially with payments to directors’ companies.
- Accounts not circulated: sending the balance sheet is a statutory duty.
- Customers moving to a director’s new business: see [Director competing business].
Start with [inspecting company records].
Can you force a dividend?
Dividends require a resolution. The usual route is an EGM to address accounts and profit allocation — see [Removing a Company Director].
Limited partnerships
Limited partners may receive dividends or interest only from profits, and capital lost through trading must first be restored — see [partnership disputes].
Speak to a Thai Lawyer About a Dividend Dispute
Pattara Law Firm advises shareholders on profit and dividend disputes, reviews company records and plans meetings or proceedings. We do not guarantee outcomes.
- Telephone: +66 99 249 5989
- LINE Official: @patt
- WhatsApp: +66 99 249 5989
- Email: info@thailandlawyer.com
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