company name condo

[Harveyboy]

hello fellow ex pats ive i question that perhaps some of you may be able to help with i bought a condo in company name ..this week i collected my papers for the property .my name 49 per cent and 3 thai with the remaining 51 SO how does it work ..if i was to pass on tomorrow would the condo go to the company i e 3 thais or can i make a will to be able to leave it to who i want ..my kids ect  or can i put it in my wifes name so it goes into Thai ownership and the make out a will to leave it to who i want ...none of this was explained to me when i bought the condo in company name thats agents eh   tks

[p_brownstone]

If the Condo is in the Company name and you own 49% of the Company Shares then you should simply make a Will bequeathing your Shareholding to whoever you wish.

 

That said, if the Condo was bought in the name of the Company I do not understand why your name should appear on any Documentation regarding the Condo or its purchase.

 

Patrick

[Langsuan Man]

I don't think the OP means that the paperwork is in his name, he is stating that the "company incorporation" papers are in 4 names, his and three other Thais (a normal property structure)

 

If the other Thais are the relatives that you (OP)  want to leave your shares to,  then nothing needs to be done, since upon your death, one of the other "owners" will take up the "directorship"  based upon the number of shares they own

 

If they are not the relatives you want to leave the condo to, then you will have to state who is to receive your shares upon your death in your Last Will and Testament.  That will make them Director and they can decide what to do about the other share holders and decide whether or not they want to close the company and put the condo in a Thai name

 

Will cost anywhere between 20 to 50 K THB to legally close a company so take that into account 

 

And by the way OP, the reason this was not explained to you is because the agents did not want to lose a sale, and a knowledgeable  consumer would never buy a condo in a company name , since there are legal alternatives;  ie. in the farang quota 

[KittenKong]

10 hours ago, Harveyboy said:

hello fellow ex pats ive i question that perhaps some of you may be able to help with i bought a condo in company name ..this week i collected my papers for the property .my name 49 per cent and 3 thai with the remaining 51 SO how does it work ..if i was to pass on tomorrow would the condo go to the company i e 3 thais or can i make a will to be able to leave it to who i want ..my kids ect  or can i put it in my wifes name so it goes into Thai ownership and the make out a will to leave it to who i want ...none of this was explained to me when i bought the condo in company name thats agents eh   tks

 

If you actually know some Thais you trust and to whom you want to give your inheritance then the obvious solution is it have their names listed as the owners of the 51%, then just leave them "your" 49% in your will. If you already know them and want to leave them everything anyway they are perhaps somewhat less likely to steal it from you.

 

You aren't very clear about the details but it sounds as though you have bought an existing company with nominee Thai shareholders. I think that this is both illegal and dangerous, for several reasons. By buying an existing company you also take on all liabilities of that company, known and unknown. This alone seems massively risky to me. But you also run the risk of the 51% Thai owners disposing of the company assets or doing other things without you knowing about it, which may come back to bite you. For this reason most farangs who deal with nominee shareholders here seem to back themselves up with a different share structure for decision-making, where the farang retains the voting rights. Your lawyer should be able to advise you about this, though personally I would not be inclined to trust them very much either.

 

Personally I think that anyone who gets involved with company purchase and nominee shareholders in Thailand must be completely out of his mind. I wouldn't do it under any circumstances whatsoever. Owning a Thai condo in my own name is more than dodgy enough for me, thanks.

[p_brownstone]

55 minutes ago, Langsuan Man said:

I don't think the OP means that the paperwork is in his name, he is stating that the "company incorporation" papers are in 4 names, his and three other Thais (a normal property structure)

 

If the other Thais are the relatives that you (OP)  want to leave your shares to,  then nothing needs to be done, since upon your death, one of the other "owners" will take up the "directorship"  based upon the number of shares they own

 

If they are not the relatives you want to leave the condo to, then you will have to state who is to receive your shares upon your death in your Last Will and Testament.  That will make them Director and they can decide what to do about the other share holders and decide whether or not they want to close the company and put the condo in a Thai name

 

Will cost anywhere between 20 to 50 K THB to legally close a company so take that into account 

 

And by the way OP, the reason this was not explained to you is because the agents did not want to lose a sale, and a knowledgeable  consumer would never buy a condo in a company name , since there are legal alternatives;  ie. in the farang quota 

 

A lot of misunderstanding and / or misinformation here:

 

1) 

"If the other Thais are the relatives that you (OP)  want to leave your shares to,  then nothing needs to be done, since upon your death, one of the other "owners" will take up the "directorship"  based upon the number of shares they own."

 

You are confusing "Shareholder" with "Director", the two are entirely different.

 

A Directorship can never be inherited, passed on or bequeathed - a Director is appointed by Shareholders in an Annual General Meeting or an Emergency General Meeting and must be approved by a Majority of the Shareholders at that meeting (if a Quorum is present).

 

A Shareholder is anyone who bought, or has been bequeathed, Shares in the Company - i.e. Shares can be passed on at the whim or wish of the original Shareholder - however Directorships cannot.

 

2)

"If they are not the relatives you want to leave the condo to, then you will have to state who is to receive your shares upon your death in your Last Will and Testament.  That will make them Director and they can decide what to do about the other share holders and decide whether or not they want to close the company and put the condo in a Thai name."

 

Again see above - your death will not automatically make the inheritor of your Shares in the Company a Director (even if you, yourself, are - which you do not make clear in your Post).

 

3) There is absolutely no need to close the Company upon your death - which in any case you could not do as a minority Shareholder - or even as a Director (which we do not know if you are) - it makes no difference at all, the Company is a legal entity in itself and will continue to be so even after your death . It can only be closed by a Resolution passed at an AGM or EGM which would need the approval of a majority of the Shareholders, and you - or your Heirs - only have a 49% holding.

 

4) There is no alternative but to make a Will bequeathing your Shareholding to someone else after your death - then it is in their hands to decide what to do with their minority stake in the Company.

 

Patrick

 

 

 

 

 

Edited December 8, 2016 by p_brownstone

[Harveyboy]

hi all  thanks for the reply  first but was a new build a new company not one i bought ..so you are saying that even if i just wanted to close down the company i cannot without the say of the other 3 share holders ..i would be willing to put the names of thais i know and trust on the docs instead of having 3 people on there i have never met did you say that this is possible ..so i was given my condo owernership book ..3 copys of the share transfer documents..  and a very official looking parchment type of paper which i was told was my legal doc for the company but all inTHAI of course if it had not been for my girlfriend asking about the shareholders id never have given it a thought  the plan was to leave it to my kids but perhaps selling it may be a good choice if i cannot change it into Thai name .if you have time to reply on this and give your opinion  be happy to hear from you tks

[Harveyboy]

ok just reading back over comments seems the idea of putting names of friends THAI in replacing the others may seem the best option any ideas on the type of cost of this ..does it have to stay in company name or if transfered into a thai name can i close the company down ..last week i asked Matrix if i could change it to foriegn name only to be told the the number of names have all been allocated WELL WOULD YOU BELIEVE IT ..only had it 1 year but have been made an offer for it Tempted wouldnt make a lot but it might make for an easier life eh 

Edited December 8, 2016 by Harveyboy

[p_brownstone]

D@mn!

 

I'm embarrassed to realise I wasted time replying in detail to such a Troll.

 

Another "Senior moment" on my part perhaps!

 

Patrick

 

 

[Harveyboy]

bad moment mate perhaps you should get out more  tks anyway TROLL

[Harveyboy]

O K Patrick dont really need to explain why but thats the sort of guy i am ...first the reason you are seeing questions to answers you have already given is that im also on another forum at the same time copying and posting to other members on différant answers and help they are giving so a lot of what you are seeing is new to other people ok mate hope that explains the troll stuff ..and for what its worth thanks for the genuine interest in my post and the help

[Henryford]

I don't understand people who buy condos in a company name. The WHOLE POINT of a condo is that it is the one thing foreigners can buy and own in their own name. There are thousands of farang name condos for sale.

[lkn]

8 hours ago, Henryford said:

I don't understand people who buy condos in a company name. The WHOLE POINT of a condo is that it is the one thing foreigners can buy and own in their own name. There are thousands of farang name condos for sale.

 

For condos primarily targeted at westerners, like most things built in Pattaya, the developer has a problem selling 51% to Thais, so they will sell these at a discount and convince buyers that it’s a really good deal.

[KittenKong]

12 hours ago, Henryford said:

I don't understand people who buy condos in a company name. The WHOLE POINT of a condo is that it is the one thing foreigners can buy and own in their own name. There are thousands of farang name condos for sale.

 

Some people who are specifically thinking about inheritance may wish to buy in company name. But for many farangs it seems to me to be a daft idea.

 

As mentioned, Thai-quota units often (not always) sell at a discount to farang-quota units, though this discount may be quite small in practice. Also for new builds the payment conditions may be more lenient in the Thai quota (smaller payments early on etc.).

[Henryford]

On 23/12/2016 at 0:33 AM, KittenKong said:

 

Some people who are specifically thinking about inheritance may wish to buy in company name. But for many farangs it seems to me to be a daft idea.

 

As mentioned, Thai-quota units often (not always) sell at a discount to farang-quota units, though this discount may be quite small in practice. Also for new builds the payment conditions may be more lenient in the Thai quota (smaller payments early on etc.).

 

You might get a small discount for a thai owned condo but i suspect that will be more than offset by company set up/wind down fees, annual accountancy charges and a lower price when, or IF, you can sell.

[Harveyboy]

On ‎23‎/‎12‎/‎2016 at 0:33 AM, KittenKong said:

 

Some people who are specifically thinking about inheritance may wish to buy in company name. But for many farangs it seems to me to be a daft idea.

 

As mentioned, Thai-quota units often (not always) sell at a discount to farang-quota units, though this discount may be quite small in practice. Also for new builds the payment conditions may be more lenient in the Thai quota (smaller payments early on etc.).

ok ive started th close down of the company it was an error on my part it was sold as a good deal got it at a good price. i did not do my homework MY FAULT  but now after looking at the fors and against and many comments and advice from u all at TV..im transferring the condo into my wifes name  ..could not put it in company name in her name even if i wanted to as she has a position here in the government and is not allowed to have holdings in an outside company . a company in BKK is doing the paperwork to see that the condo still stays legally mine on divorce..separation ect  condo to be sold and funds transferred to a named account this way at least i know the person unlike having 3 people on a company that could be anyone.  comments welcome

[blackcab]

If the condo is in your wife's name, how would you receive 100 per cent of the proceeds of the sale on divorce? How could she be made to give you more than half?

 

Just wondering...

[Harveyboy]

17 hours ago, blackcab said:

If the condo is in your wife's name, how would you receive 100 per cent of the proceeds of the sale on divorce? How could she be made to give you more than half?

 

Just wondering...

yes mate thats what i thought but apparently a legal agreement can be drawn in which she states the signing over of condo in case of séparation its costly and a lot of paperwork but the lawyers assure me it legal as long as the paperwork is done and my wife willingly states this. let me know what you think tks.. i dont have much of an option its sell or do it this way and dont really want to sell it 

[blackcab]

My main problem with contracts isn't the contract. It's what happens if one party does not honour the contract.

 

The answer is you have to go to Court and sort it out. Even if you win in Court it's going to take a lot of time and effort... and if she spent the money by the time you get a Court judgement, then what?

 

You would still have to pay your legal costs.