Where a corporate debtor cannot pay its debts, the creditor can
enforce the corporate debtor pay for the debt are as follows:
A creditor has the right to sue a corporate debtor and obtain
a civil judgment. If the debtor does not comply with the judgment,
enforcement procedures through the court may be commenced. The
execution officer is authorised to seize or attach the debtor's
assets for sale by auction.
Section 278 "Subject to the provisions of this section governing
the powers and duties of executing officers, and as from the date
of service of the writ of execution on the judgment debtor or,
if the writ has not been so served, from the date of the issue
of the writ, the executing officer shall be empowered, on behalf
of the judgment creditor, to receive performance and deposits
made by the judgment debtor and to give receipts therefor, to
seize or attach and to hold property belonging to the judgment
debtor, to sell it by auction or to dispose of such property or
the proceeds thereof, and generally to carry out all measures
of execution prescribed by the court in the writ of execution.
An executing officer shall be responsible for the safe custody
of any Moines, properties or documents which were seized by him
or which were paid or delivered to him under a writ of execution.
An executing officer shall make and keep in safe custody records
of all measures of execution carried out by him, and report to
the court from time to time.
Where a corporate debtor is sued in bankruptcy, criminal liability
may result from breach of the various bankruptcy provisions, including
failure to advise of a change in address, failure to attend creditor
meetings or provide reasonable assistance with realization of
assets, or provision of misleading information and failure to
communicate material matters without reasonable excuse (Bankruptcy
Act, ss. 161-177). The following provisions of the Penal Code
are also relevant:
Section 341: "Whoever dishonestly deceives a person with the
assertion of a falsehood or the concealment of the facts which
should be revealed, and, by such deception, obtains a property
from the person so deceived or a third person, or causes the person
so deceived or a third person to execute, revoke or destroy a
document of right is said to commit the offense of cheating a
fraud, and shall be finished with imprisonment not exceeding three
years or fine not exceeding six thousand Baht, or both".
Section 350: "Whoever, in order to prevent a creditor of other
person from receiving payment in whole or in part which has been
or will be claimed through the court, removes, conceals or transfers
any property to another person, or maliciously contracts a debt
for any sum which is not true, shall be punished with imprisonment
not exceeding two years or fine not exceeding four thousand Baht,
or both".
A wide variety of criminal sanctions exist for breach of the
provisions of the new Article 90 of the Bankruptcy Act (ss.90/80-90/90)
with respect to reorganization of a debtor's business operations,
including failure to provide information, comply with provisions
of the act, etc. Liability extends to managers, administrators,
corporates and third persons.
