{"id":26812,"date":"2026-10-18T11:20:41","date_gmt":"2026-10-18T04:20:41","guid":{"rendered":"https:\/\/www.thailandlawyer.com\/en\/?p=26812"},"modified":"2026-11-02T16:44:58","modified_gmt":"2026-11-02T09:44:58","slug":"director-competing-business-thailand","status":"publish","type":"post","link":"https:\/\/www.thailandlawyer.com\/en\/director-competing-business-thailand\/","title":{"rendered":"Directors Competing With Their Company in Thailand: Section 1168 and Liability"},"content":{"rendered":"\n<p><strong>Short answer:<\/strong> A director of a Thai limited company may not carry on a competing business of the same nature, or become an unlimited partner in a competing firm, without the consent of the shareholders\u2019 general meeting. The Supreme Court treats a breach as a tort, with accomplices jointly liable.<\/p>\n\n\n\n<p>See the overview in <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.thailandlawyer.com\/en\/business-partner-fraud-thailand\/\">Business Partner Fraud in Thailand<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-section-1168-prohibits\">What Section 1168 prohibits<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Competing trade:<\/strong> any business of the same nature that competes with the company, for oneself or others.<\/li>\n\n\n\n<li><strong>Unlimited partnership:<\/strong> becoming an unlimited partner in a competing firm.<\/li>\n\n\n\n<li><strong>Exception:<\/strong> permitted with the consent of the general meeting.<\/li>\n\n\n\n<li><strong>Scope:<\/strong> the rule also binds a director\u2019s representative.<\/li>\n<\/ul>\n\n\n\n<p>Thailand has no separate \u201ccorporate opportunity doctrine\u201d statute identified in this research; analysis should start from Section 1168 itself.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"supreme-court-judgment-no-23592567-2024\">Supreme Court Judgment No. 2359\/2567 (2024)<\/h4>\n\n\n\n<p>The Court decided the following.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The director:<\/strong> joining the board of a competitor while in office was a wilful breach of Section 1168 and a tort under Section 420.<\/li>\n\n\n\n<li><strong>The competitor:<\/strong> jointly liable, because it acted with the director to compete.<\/li>\n\n\n\n<li><strong>A co-founder who knew of the scheme:<\/strong> jointly liable as a joint tortfeasor, even though their appointment as the plaintiff\u2019s director had not been registered.<\/li>\n\n\n\n<li><strong>Compensation:<\/strong> governed by Section 438.<\/li>\n\n\n\n<li><strong>Limit on relief:<\/strong> the Court would not order the competitor dissolved or its objects changed.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"who-sues\">Who sues<\/h4>\n\n\n\n<p>The company, or a shareholder on its behalf if it refuses \u2014 see [<a href=\"https:\/\/www.thailandlawyer.com\/en\/shareholder-sue-director-thailand\/\">suing a director as a shareholder<\/a>]. In a partnership, other partners may claim profits or compensation within one year of the breach \u2014 see[ <a href=\"https:\/\/www.thailandlawyer.com\/en\/partnership-disputes-thailand\/\">Partnership Disputes in Thailand<\/a>].<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"faq-2\">FAQ<\/h4>\n\n\n\n<p><strong>Can a former director compete after resigning?<\/strong> Section 1168 binds serving directors; post-resignation restrictions depend on any separate agreement.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"speak-to-a-thai-lawyer-about-director-competition\">Speak to a Thai Lawyer About Director Competition<\/h4>\n\n\n\n<p>Pattara Law Firm reviews evidence of competing activity, identifies jointly liable parties, sends warning letters and <a href=\"https:\/\/www.thailandlawyer.com\/en\/legal-services-thailand\/litigation-lawyer\/\" target=\"_blank\" rel=\"noreferrer noopener\">represents companies in Thai courts<\/a> to recover damages. We do not guarantee outcomes.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/www.thailandlawyer.com\/en\/contact-us\" style=\"border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-left-radius:4px;border-bottom-right-radius:4px;background-color:#034383\"><strong>Consult Our Corporate Dispute Lawyers<\/strong><\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Telephone: +66 99 249 5989<\/li>\n\n\n\n<li>LINE Official: @patt<\/li>\n\n\n\n<li>WhatsApp: +66 99 249 5989<\/li>\n\n\n\n<li>Email: info@thailandlawyer.com<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Short answer: A director of a Thai limited company may not carry on a competing business of the same nature, or become an unlimited partner in a competing firm, without the consent of the shareholders\u2019 general meeting. The Supreme Court treats a breach as a tort, with accomplices jointly liable. See the overview in Business Partner Fraud in Thailand. What Section 1168 prohibits Thailand has no separate \u201ccorporate opportunity doctrine\u201d statute identified in this research; analysis should start from Section&#8230; <a class=\"more-link\" href=\"https:\/\/www.thailandlawyer.com\/en\/director-competing-business-thailand\/\" rel=\"nofollow\">Read More ><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,27],"tags":[],"class_list":["post-26812","post","type-post","status-publish","format-standard","hentry","category-business-law-thailand","category-corporate-law","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can a Director Compete With the Company in Thailand? 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