This article takes a look at some of the fraudulent practices that exist within the Thai commerce sector, especially bankruptcy.
The world of commerce is unforgiving and not every entrepreneur is successful; many do not make the cut in highly competitive industries and some have to declare bankruptcy. The rate of businesses that don’t make it through the first year is indeed higher than it should be; some say it is due to lack of planning. When a person sees one of their neighbours has started a business and it looks like it is doing well, they often copy the neighbour without going into the numbers and doing any research.
Exploiting The Law
Of course, there are those who look to exploit any loopholes there might be in commerce laws. A person might, for example, set up a business, order lots of products on credit, sell everything and file for bankruptcy, while owing creditors millions of baht. This happens in most countries. There will always be an element that is focused on committing business fraud and the clever ones often get away with it.
Business Conflicts
Many conflicts arise in business; many expats end up needing a Koh Samui lawyers from Vize Counselor after an issue with the staff or a supplier. One compounding issue for expats in business is the language, which can lead to misunderstandings. If you are having issues with a supplier or would like some legal advice about Thai labour laws, a Google search is all it takes to find an English-speaking law firm.
Unpaid Invoices
This is the primary cause of legal action within the business community. One company refuses to pay another and before long, the creditor files a lawsuit and lawyers are involved. Of course, the status of the current economic climate plays a great part. When there is a recession, business conflicts are more frequent.
Design Errors
There are cases where a company files a lawsuit against another business entity, citing a design fault in a product. Both parties might cite the contract and if an agreement cannot be reached, the matter goes in front of a commercial court. A judge hears both parties and then makes a ruling, which can be appealed and often is. Commercial courts are very busy and every effort is made to settle out of court, which is a cheap way of resolving issues. This is when the corporate legal team earn their fees. Some companies have insurance to cover legal feasts, which can be very useful; legal costs in Thailand can be very high.
Misrepresentation
A company might advertise a product and be inaccurate with their claims; usually, a customer would file a lawsuit if the supplier publishes misinformation regarding their products. Occasionally, a government department takes up a legal challenge to force incorrect claims to be retracted and should the company lose, they have to pay both parties’ costs.
Construction Conflicts
A builder might be sued by a client for inferior workmanship. Large civil engineering projects are sometimes impacted by lawsuits and claims for compensation, which a construction law and dispute resolution attorney deals with. The laws are indeed complex and the talents of your legal team would have some bearing on the outcome. Failure to finish construction results in lawsuits; often, this is due to developers running out of money before the project is completed.
Misuse Of Assets
This occurs in corporate business and there are legal recourses if it can be proven that funds or assets were improperly used. It is normally company directors that are charged with this crime, someone with the authority to manage assets.
Thailand’s legal system is loosely based on British law. When you find yourself in need of legal advice and representation, fret not. There’s always an English-speaking law firm nearby that would provide the legal help you need.
