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.
For more details on the OIC’s notification regarding capital reductions for life and non-life insurance companies, or for any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at nop.c@tilleke.com, Witchupong Chittchang at witchupong.c@tilleke.com, Ajaree Trachukul at ajaree.t@tilleke.com, Thammapas Chanpanich at thammapas.c@tilleke.com, or Sireethorn Wijan at sireethorn.w@tilleke.com.
