Reduction of Social Security Fund Contributions Rate to Ease Impact of COVID-19 Outbreak
On 28 May 2021, the Royal Gazette published “Ministerial Regulation Prescribing the Social Security Fund Contribution Rate B.E. 2564 (2021)” to help individuals and businesses cope with the financial challenges that they face during the COVID-19 pandemic. Under the Regulation, the employers’ and the employees’ contributions to the Social Security Fund have been reduced from 5% to 2.5% of the employee’s monthly wages from 1 June 2021 until 31 August 2021.
Draft Amendment to Public Limited Companies Act Approved by Cabinet
On 11 May 2021, the Cabinet passed a resolution approving the draft amendment to the Public Limited Companies Act B.E. 2535 (1992) (“Draft Amendment“). The Draft Amendment introduces the recognition of electronic methods for several undertakings of public limited companies including the following:
- Advertising by public limited companies through electronics means instead of newspapers;
- Submission of documents to directors, shareholders, or creditors via electronic means;
- Electronic Board of Directors’ meetings and shareholders’ meetings;
- Reduction of the notice period for calling the Board of Directors’ meeting from seven days to three days; and
- Appointment of a proxy to attend the shareholders’ meeting via electronic methods.
Further Postponement of Implementation Deadline for Personal Data Protection Act
On 8 May 2021, the Royal Gazette published the “Royal Decree Prescribing an Entity and Business in which the Data Controller is Exempt from the Personal Data Protection Act B.E. 2562 (2019) (No.2) B.E. 2564 (2021)”. As a result, the previous one-year long postponement of the effective date of key operative provisions of the Personal Data Protection Act B.E. 2562 (2019) (“PDPA“) has been postponed from 1 June 2021 to 1 June 2022.
The rationale for the further postponement is the severity of the COVID-19 pandemic and its significant impact on entities and businesses in both the private and public sectors across the country, which has delayed the PDPA readiness of many. When combined with the need to utilise advanced technology to implement the PDPA provisions, it was deemed reasonable to postpone the full implementation of the PDPA until 1 June 2022.
For more information, click here to read our Legal Update.
Amendments to Civil Commercial Code to Change Statutory Interest Rate
On 10 April 2021, the Emergency Decree Amending the Civil and Commercial Code B.E. 2564 (2021) (“Emergency Decree“) was published in the Royal Gazette. The Emergency Decree came into force on 11 April 2021. The Emergency Decree reduces the statutory interest rate from 7.5% to 3% per year. With regard to default interest, it is reduced from 7.5% to 5% per year, unless otherwise agreed in accordance with the law. The Emergency Decree also provides that the default interest rate in the case of installment payments may accrue only on the principal amount of the instalment which becomes overdue. The changes set out in the Emergency Decree only apply to the interest which is due from 11 April 2021 onwards.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
