Section Code: 1200 - 1205
Thai Civil and Commercial Code
PARTNERSHIPS AND COMPANIES
Part 3: Management of Limited CompaniesPart 5: Dividend and Reserve
Section 1200. Distribution of Dividend
The distribution of dividend must be made in proportion to the amount paid upon each share, unless otherwise decided with regards to preference shares.
Section 1201. Resolution Required for Declaration of Dividend
No dividend may be declared except by a resolution passed in a general meeting.
The directors may from time to time pay to the shareholders such interim dividends as appeared to the directors to be justified by the profits of the company.
No dividend shall be paid otherwise than out of profits. If the company has incurred losses, no dividend may be paid unless such losses have been made good.
Section 1202. Reserve Fund
The company must appropriate to a reserve fund, at each distribution of dividend, at least one-twentieth of the profits arising from the business of the company, until the reserve fund reaches one-tenth part of the capital of the company or such higher proportion thereof as may be stipulated in the regulations of the company.
If shares have been issued at a value higher than the face value, the excess must be added to the reserve fund until the latter has reached the amount mentioned in the forgoing paragraph.
Section 1203. Creditors can demand return of improperly paid Dividend
If dividend has been paid contrary to the provisions of the last two proceeding sections, the creditors of the company are entitled to have the amount so distributed returned to the company, provided that a shareholder cannot be obliged to return dividend which he has received in good faith.
Section 1204 * Notice of Dividend
Notice of any dividend that may have been declared shall be given by letter to each shareholder whose name appears on the register of shareholders. If the company has any share represented by a certificate issued to bearer, the notice shall also be published once at least in a local paper.
Section 1204. Requirements for Notice
Notice of any dividend that may have been declared shall be either published twice at least in a local paper or given by letter to each shareholder whose name appears on the register of shareholders.