Last week I checked the paperwork of a farang client (I'm an agent) who wants to sell his property. The client first had to collect the paperwork from his lawyer's office where it was in safekeeping - his Nor Sor Saam Kor and his company papers.
The Deed was fine, land registered in the name of the company, but an inspection of the company papers revealed that the farang had 39% of the shares and he was NOT a/the company director. A Thai lady with 60% of the shares was the sole director, and another Thai held the last 1%.
The client was understandably quite upset by this circumstance and decided to dump this lawyer immediately and agreed to use the one we recommended to put things right. The client now has 49% and sole directorship.
Both Thai shareholders were easily contacted and willingly signed the documents required to get them out of the company, so there was no awkwardness there, but I'm left with a feeling somewhere between disappointment and suspicion concerning the lawyer who set up the company in the first place. Was it laziness, ineptitude or dishonesty which led him to sell his farang client a more-or-less worthless company/property set up and then keep it in his drawer?
With our industry struggling under its own reputation and the state of the world economy and then Thai politics, we don't need lawyers delivering this kind of crap.
cd.
Hua Hin lawyer - lazy, inept, or dishonest?
Hua Hin lawyer - lazy, inept, or dishonest?
All that is necessary for evil to triumph is for good men to do nothing. (Edmund Burke).
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JimmyGreaves
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sandman67
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CD
good on you mate for doing the right thing and helping him out....thats the message here. Thats damn good business....client care.
if all agents and developers showed the same mettle then the market wouldnt need cleaning up
good on you mate for doing the right thing and helping him out....thats the message here. Thats damn good business....client care.
if all agents and developers showed the same mettle then the market wouldnt need cleaning up
"Science flew men to the moon. Religion flew men into buildings."
"To sin by silence makes cowards of men."
"To sin by silence makes cowards of men."
Well done Craig.
People buying through the Property Association will have specialists to rely on to check all this for you, competent lawyers etc.
Some safety checks for buyers, if their agent is not forthcoming (yes yes, I know you shouldn't have to do it, but its your money at risk):
1) Always get an English translation of company formation documents, or any other documents come to that. It clearly lists who is director and who has what shares.
2) When you sign the Thai shareholder sheet BEFORE company incorporation ie: before it's too late, you can't read much but you have to sign next to your name and number of shares, you can see how many shares you are signing upto as the numbers are in English.
3) Ask a Thai in the agents office to read it for you, there's not an agent in town that would not oblige if you ask, check whether your shares are ordinary or preferred (vital for voting rights.)
Remember you don't have to do or sign anything there and then, you can spend a few days having it all double checked to make sure your lawyers done his job properly. If your lawyer is upset you don't trust him f'him its your right, lawyers take 3 months back home, you take 3 days here if you want.
Even if you don't get English translation or a.n.other to check it out you see the number of shares next to where you have to sign
SJ
People buying through the Property Association will have specialists to rely on to check all this for you, competent lawyers etc.
Some safety checks for buyers, if their agent is not forthcoming (yes yes, I know you shouldn't have to do it, but its your money at risk):
1) Always get an English translation of company formation documents, or any other documents come to that. It clearly lists who is director and who has what shares.
2) When you sign the Thai shareholder sheet BEFORE company incorporation ie: before it's too late, you can't read much but you have to sign next to your name and number of shares, you can see how many shares you are signing upto as the numbers are in English.
3) Ask a Thai in the agents office to read it for you, there's not an agent in town that would not oblige if you ask, check whether your shares are ordinary or preferred (vital for voting rights.)
Remember you don't have to do or sign anything there and then, you can spend a few days having it all double checked to make sure your lawyers done his job properly. If your lawyer is upset you don't trust him f'him its your right, lawyers take 3 months back home, you take 3 days here if you want.
Even if you don't get English translation or a.n.other to check it out you see the number of shares next to where you have to sign
SJ
Exactly Jimmy.JimmyGreaves wrote:He was a very lucky client as teh 60% shareholder could have just hung onto it!
On paper at least, the rip-off was already complete. The client owns the property only by virtue of the fact that he's got the keys and no-one hassles him for living there.
The 60% shareholder appeared quite disconcerted to find out what position she was in, and she was, as I said, perfectly willing to sign herself out. But what if she had died in the meantime? Would the lawyer have been next?
Hopefully yours,
cd.
All that is necessary for evil to triumph is for good men to do nothing. (Edmund Burke).
