LEGAL ISSUES ON CREDITORS’ RIGHTS AND PROTECTIONS IN SINGLE MEMBER COMPANIES

Abstract

Single member company is a type of business organisations which can be established by a sole member who shall have a limited liability not exceeding the contribution. Since single member company has a separate legal entity, it shall have its own rights and liabilities. This hybrid characteristic is problematic for creditors who engage in business transactions with single member companies because they fear that their rights will be affected. Since nowadays, there is an attempt to recognise the concept of single member company in Thai jurisdiction, the key to the success of the new legislation is that the law must balance between single member companies’ benefit and creditors’ rights for the highest mutual interest.