Buying Into An Exisiting Business

[terrytan]

I am interested in buying into an exisiting business and am now going thru its various debts and have found amongst others this,

A person (company employee, not sure if MD or not) who was the authorised cheque signee, used a company cheque to clear a personal debt to a local hospital so that they could leave the hospital unhindered

The person in question has now left Thailand but states that they are responsible for the debt

I do not know if the hospital has presented the cheque for payment yet, but if they were to they would find no money in that account

My question is;

Under Thai law who is responsible for this debt

Thanks

[Soutpeel]

Seeing as a company is legal entity ie its seen as a "person"....the company would be responsible for bill in this case with hospital, the company would then have to try and get the money back from the indivdual, and very obvious the person who did this knew this fact, this is why due dilligence is so important before buying existing business'

If you are still serious about buying this business, would be better to settle up with the hospital and write it off (highly unlikely you will get your money back if the person concerned has bailed the country

[BWPattaya]

It is also a criminal offence to write a cheque drawn on an account without any funds to cash that cheque. So the police get involved and arrest warrants issued. Be careful, as someone else mentioned, due diligence.

[chainarong]

Don't bother, drop the deal, get the hel_l outa there fella.

[sarahsbloke]

As others have said

Don't get involved in this business.

[geriatrickid]

If you can quantify the monies owed, then deduct those monies from whatever amount you were going to pay for your investment. As well, you may wish to discuss with your legal counsel a manner in which to aquire the interest without assuming the debts. For example, if the business is structured on preferred shares, then purchasing those shares only might be worth consideration. There is also the option of an asset purchase only. In my sector, this is how companies get around severance or debt issues. It sucks to be on the receiving end though. I know since it happened to one of my employers. It allowed the new company to slash pensions and benefit plans ;(

[asiawatcher]

The law is clear - misappropriation of company funds is a criminal offense. You have a self confessed perpetrator and if Thai, you can have the person charged. If Farang it is unlikely the Police will care or do anything unless you pay them some assistance money. LOL. Otherwise write it off as a bad debt against income and get a tax break and move on. This is not the west.

But you question who is responsible for the debt? The person who receives the service is liable. If the person sought medical assistance due to a work related injury then the employer 'could' accept responsibility but if your statement is the person has accepted the debt - even if it remains unpaid - then it does not sound like a workers compensation case.

The payment by third party funds is the issue. And if you have not seen the bank statements yet to ascertain if the cheque was cashed, then stop payment immediately. Then the hospital will take the action and your problem is solved. To write a bounced cheque in Thailand is a jail-able offence.

Edited September 26, 2010 by asiawatcher

[Soutpeel]

The law is clear - misappropriation of company funds is a criminal offense. You have a self confessed perpetrator and if Thai, you can have the person charged. If Farang it is unlikely the Police will care or do anything unless you pay them some assistance money. LOL. Otherwise write it off as a bad debt against income and get a tax break and move on. This is not the west.

But you question who is responsible for the debt? The person who receives the service is liable. If the person sought medical assistance due to a work related injury then the employer 'could' accept responsibility but if your statement is the person has accepted the debt - even if it remains unpaid - then it does not sound like a workers compensation case.

The payment by third party funds is the issue. And if you have not seen the bank statements yet to ascertain if the cheque was cashed, then stop payment immediately. Then the hospital will take the action and your problem is solved. To write a bounced cheque in Thailand is a jail-able offence.

Think you are getting confused, if the services where paid for by company cheque, whether misappropriated or not, the company, as the legal person is responsible for payment to the hospital, the misappropriation of money is a matter between the owner(s) of company and person concerned.....two separate issues, not disputing this is not a criminal offsense, but its to do with were the accountability is

By stopping the company cheque, the hospital will take action against the company concerned, not the person who missappropriated the money

[givenall]

Don't bother, drop the deal, get the hel_l outa there fella.

Yoe have to be careful, there may be other hidden things that will hunt you later. Remember this is Thailand, and everyone helps themselves, and don’t care who they hurt.

Also no one is looking to make sure the law is followed, except after the fact or money is involve

[terrytan]

Thanks for the responses guys,

I think I will walk away