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Thailand’s Office of Insurance Commission (OIC) has issued a
notification announcing new and updated criteria for the approval
of capital reductions for both life and non-life insurance
companies. The notification was published in the Government
Gazette on March 6, 2024.
These updates aim to reduce the time required and relax and
streamline the procedures for seeking OIC approval for capital
reductions.
Under the notification, general approval will be granted by the
OIC upon submission of an application to the registrar if the
capital reduction is to be implemented by way of:
- Removing registered shares that cannot be sold or that have not
yet been issued for sale; or - Reducing the share value or the number of shares to mitigate
the accumulated loss.
The reduction must not affect the share ratio of the
shareholders in the financial statement and must comply with
relevant laws, regulations, and accounting standards.
After granting written approval, the registrar will notify the
OIC to arrange for registration by the company.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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