Sign Company Checks

[KronbergTH]

Hi,

I just wonder, because the overseas falang shareholder of my company requested to be able to countersign on our company bank checks (two has to sign together on each check). The bank did ask for my work permit as usual as I am director and managing director

BUT the bank did not ask for his work permit, which he does not have because he does not work or live in Thailand.

Anyway, I still consider any kind of signature for a company in Thailand by an alien requires a work permit.

He does not intend to sign but he simply wants to be able to sign as he has a lot of money in our company bank account.

But can anybody answer whether he actually is allowed to sign a bank check for a company in Thailand without work permit?

Regards, Robert

[Simpleton]

Yes, he is.

[KronbergTH]

Yes, he is.

<{POST_SNAPBACK}>

In that case, how come I need a work permit stating I am allowed to sign company papers (I am also shareholder, small). Is a company bank check not considered company stuff? It is not a problem as he is not signing anyway, I am just confused.

[The_Moog]

Bacause company cheque authorizations are governed by a Mandate supplied from the bank.

An Eskimo can sign a company cheque if the Drawer tells the bank its ok.

Other corporate responsibilities are bound by state legislation, eg Companies Act, so thats where you get the necessity for your Work Permit.

[andreasbkk]

Hi there,

If falang does not need a W/P for being able to signing company checks. Does that also meen that he actual does not need a W/P for signing check? Is signing check not subject to law of W/P at all, and is signing check not considered work?

Cheers,

Andreas

[Arkady]

No law that says a WP is mandatory to be signatory for company cheques. I have seen several situations where there was an overseas based signatory for the Thai subsidiary or rep office of a foreign company. Some years I wanted to open an account for a new company that I didn't have a work permit for with Bangkok Bank and they refused me as signatory because of no WP. So I thought stuff them and opened an account with KBANK without any questions asked about WP. It must be just some banks being anal. If you are not happy with your bank over this issue, try another one.

There is also no law to say that the authorized signatory of a company registered on the "bay raplong" with the Mini of Commerce needs a work permit. I have never been asked for this in signing company documents but I have heard of cases where govt depts wouldn't accept an authorized signatory w/o WP. As usual it is just govt depts or banks etc making up their own silly rules.

[andreasbkk]

So you mean that one does not need a WP for being a director and signing with the stamp???

[Axel]

I have been in ther same situation. To open a company-account the banks wanted to see my WP, however, to grant my overseas partner signature on company-checks the banks allowed this as long as I had authorized them. If my partner actually would sign checks regularly(we did this for emergency, only), this could be construed as working without W/P, but it is primariloy a matter of the labour dept.

You can be a director in a Thai company, w/o WP, as long as you do not work. Once you act as managing director, i.e. working, you need a WP.

[Indo-Siam]

In practice, the rules have pretty much been at the discretion of indvidual Business Banking managers at individual bank branch offices. Many banks/branches (and particularly Bank Head offices) have always required that for a foreigner to have signature authority over a corporate bank account, that foreigner had to be a company director and have a work permit FOR THAT COMPANY.

But - there have always been quite a few banks/branches that did not require a work permit - or accepted a work permit from an unrelated company. I know for sure of several clients of my company who do not have a work permit, and live outside Thailand - but commute to Thailand several times per month to sign checks.

About six weeks ago. the Finance Ministry put out new guidelines to banks, asking them to tighten up on foreigners having signature control without a work permit - and several of the bank branches that I know had been "loose" did in fact stop non-work permit holders from being given signature authority - for any NEW accounts. But - this was evidently not applied retroactively to old accounts.

Basically - if the bank lets a foreigner sign an account signature card without a work permt, then that individual can proceed - he's not violating any law. But - I think securing such signature authority just got a lot tougher, as of about Songkran 2006.

Cheers!

Indo-Siam