Off plan condo developer - Normal capital in the company

[sikishrory]

I recently paid a reservation fee for an off plan condo.

The due diligence report came back stating there was a risk due to low company capital of just 6 million thai baht.

There was also an issue of the last financial report not being lodged apparently due to waiting for some transactions to finalise first.

They have since pointed out that they have a much larger company with 100 million capital, which seems to be correct and they reference it as related across their marketing however on paper it is actually not the actual development company in charge of the project. Despite them saying the smaller company is "under" the much larger company I don't think it makes any legal difference.

Can anyone share some figures of what the development companies capital was in projects that they have been a part of.

Thanks

[scubascuba3]

Buying off plan is very risky unless it's a major company, such as companies that built The Edge, Base, Lumpinis 

[NoDisplayName]

39 minutes ago, sikishrory said:

Despite them saying the smaller company is "under" the much larger company I don't think it makes any legal difference.

I'm not a lawyer, but.......

 

I assume the separate smaller company is set up to shield the larger corporation from liability.  Mamma can't be sued for the actions of the babies.

 

I would wonder why.