When To Return Work Permit

[dindaeng]

hi. i am a work permit holder and my company has decided to close down on 31 dec 2006 due to poor busness. i understand that the whole process to close down a limited company takes about 3-4 months before the closure is finally approved. my question is do i have to return the work permit on 31 dec 2006 or only when the dept. of commerce officially approves the closure of the company? i am also a shareholder of this company and will need to be around during the process in order to settle some outstanding debts

thanks

[Sunbelt Asia]

hi. i am a work permit holder and my company has decided to close down on 31 dec 2006 due to poor busness. i understand that the whole process to close down a limited company takes about 3-4 months before the closure is finally approved. my question is do i have to return the work permit on 31 dec 2006 or only when the dept. of commerce officially approves the closure of the company? i am also a shareholder of this company and will need to be around during the process in order to settle some outstanding debts

thanks

Closing a company can take up to two years. More likely if the company has outstanding debts. You are to return the work permit, when you are no longer working for the conmpany or they notify the Labor Dept you are not.

www.sunbeltasiagroup.com

[guardian]

hi. i am a work permit holder and my company has decided to close down on 31 dec 2006 due to poor busness. i understand that the whole process to close down a limited company takes about 3-4 months before the closure is finally approved. my question is do i have to return the work permit on 31 dec 2006 or only when the dept. of commerce officially approves the closure of the company? i am also a shareholder of this company and will need to be around during the process in order to settle some outstanding debts

thanks

Closing a company can take up to two years. More likely if the company has outstanding debts. You are to return the work permit, when you are no longer working for the conmpany or they notify the Labor Dept you are not.

www.sunbeltasiagroup.com

SBA, I'm sure you must have already read the OP's posting correctly. But, he has also stated that he's a shareholder of the company, so is he not liable for any outstanding company debts to? Then will he have to wait for the full time till closure ?

[Sunbelt Asia]

SBA, I'm sure you must have already read the OP's posting correctly. But, he has also stated that he's a shareholder of the company, so is he not liable for any outstanding company debts to? Then will he have to wait for the full time till closure ?

The limited liability structure of a company limits the liability of shareholders to the capital they own in the company. Shareholders are liable for any unpaid portion of this capital. If he has paid this portion, than he has no liability. ( Exception if he is also a director)

Take the situation of a company that is put into liquidation owing more to creditors than the company owns in net assets. The liability of shareholders in such a liquidation position is limited to the fully paid up portion of shares they own.

Example: if a shareholder owns 1,000 shares in a company with a value of 1,000 Baht each, the shareholder is liable for the full 1,000,000 Baht. However, if the shareholder has only paid up 250,000 Baht towards the 1,000 shares issued to that shareholder (value 1,000 Baht each), then the shareholder remains liable to creditors for the balance of 750,000 in unpaid capital.

www.sunbeltasiagroup.com

[guardian]

Thanks for the info, SBA.

[Sunbelt Asia]

Thanks for the info, SBA.

You are welcome. Happy Holidays.

www.sunbeltasiagroup.com

[Nemo.]

SBA, I'm sure you must have already read the OP's posting correctly. But, he has also stated that he's a shareholder of the company, so is he not liable for any outstanding company debts to? Then will he have to wait for the full time till closure ?

The limited liability structure of a company limits the liability of shareholders to the capital they own in the company. Shareholders are liable for any unpaid portion of this capital. If he has paid this portion, than he has no liability. ( Exception if he is also a director)

Take the situation of a company that is put into liquidation owing more to creditors than the company owns in net assets. The liability of shareholders in such a liquidation position is limited to the fully paid up portion of shares they own.

Example: if a shareholder owns 1,000 shares in a company with a value of 1,000 Baht each, the shareholder is liable for the full 1,000,000 Baht. However, if the shareholder has only paid up 250,000 Baht towards the 1,000 shares issued to that shareholder (value 1,000 Baht each), then the shareholder remains liable to creditors for the balance of 750,000 in unpaid capital.

www.sunbeltasiagroup.com

True if everything is "kosher". In UK I know the "veil of incorporation" can be lifted and shareholders become personally liable for all debts if they acted (especially as director shareholders) unlawfully - ie you are teated as a "sole trader@ or "partnership". Dont know if Thai law has the same feature but most countries do have similar laws as its a threat to bad directors

And just imagine if a creditor bribes...............

[Sunbelt Asia]

True if everything is "kosher". In UK I know the "veil of incorporation" can be lifted and shareholders become personally liable for all debts if they acted (especially as director shareholders) unlawfully - ie you are teated as a "sole trader@ or "partnership". Dont know if Thai law has the same feature but most countries do have similar laws as its a threat to bad directors

And just imagine if a creditor bribes...............

If you are a director, yes you can be liable.

A shareholder...no additional liability other than share capital.

Thats why I wrote

The limited liability structure of a company limits the liability of shareholders to the capital they own in the company. Shareholders are liable for any unpaid portion of this capital. If he has paid this portion, than he has no liability. ( Exception if he is also a director)

www.sunbeltasiagroup.com