Looking back, looking at the past, financial business - banking - Thai capital market Looking towards the future (Part 5)

During this period, a new round of crisis in Thailand may occur again. Therefore, I would like to see a draft law prepared to deal with the impending crisis. Thailand should be prepared to predict in advance that Passing laws can prevent and alleviate crises. and not allowing the law to be an obstacle in promoting and developing the economy

As I have learned that My experiences in studying and working during the third period, 3-2534, had many important events. I would like to divide the content into 2544 parts. The first part of the previous article was discussed. The "Tom Yum Kung Crisis" has been discussed. This article will be the last part of my work in the third period, as follows:

Period 3 (2534 to 2544): Enactment of 11 laws that are called treason laws - is it really treason?

As a result, Thailand had to request assistance from the IMF after the Tom Yum Kung crisis in 2542. Thailand had to enact 11 laws as shown in the letter of intent made with the International Monetary Fund or IMF. The laws are divided into: 3 groups are

1. Group of laws that increase efficiency, convenience and speed in managing business debts of the private sector. Which has a total of 5 editions:

1. Bankruptcy Act No. 5, B.E. 2542, which adds business rehabilitation laws, similar to the bankruptcy laws of the United States, called Chapter Eleven and

2. The Bankruptcy Court Establishment Act, B.E. 2542 (XNUMX) to make considerations expeditious.

3.Civil Procedure Amendment Act Regarding trivial cases

4.Civil Procedure Amendment Act No. 18 regarding enforcement of cases.

5.The Act amending the Civil Procedure Code, No. 19, regarding default hearings.

2. A group of laws that facilitate the holding of residence rights for foreigners, which includes 2 laws:

1. The Land Code Amendment Act, No. 8, which allows foreigners to own land up to 1 rai under specified conditions and

2. Condominium Act No. 3, which allows foreigners to own no more than 49 percent of condominiums.

3. A group of laws that expand the rights and investment opportunities of foreigners in Thailand, which includes 3 laws:

1.Foreign Business Act 2542

2. State Enterprise Capital Act 2542

3. Act on Leasing Real Estate for Commerce and Industry, B.E. 2542

And there is another law which is not in the above group, which is the Social Security Act of 2542, which if it had not been enacted during that time, the people and employees would not have benefited until today.

Thoughts when looking back

The above 11 laws at that time were opposed by many groups of citizens, claiming that they would cause Thai people to lose their rights to conduct business. and will cause foreigners to dominate business operations in Thailand And there has been an effort to amend this law. Claimed to protect investors or Thai business operators Proposing such a law is treason.

I personally believe that over a period of more than 20 years until the present, such laws have strengthened and enabled the Thai economy to overcome the crisis. In other words, such laws have definitely had more good results than bad results. It is not a treason law as some have accused.

I would like to give examples of 3 laws:

1. Business rehabilitation law and the Central Bankruptcy Court If Thailand does not have a business rehabilitation law including the Central Bankruptcy Court Business rehabilitation of large debtor companies which is a debtor who employs a large number of employees in Thailand, this may not happen. and must go bankrupt Whether it is the case of TPI Polene Public Company Limited, which is an epic story of business rehabilitation. And there are many lawsuits. Until now, it has become an IRPC company that has greatly participated in strengthening the petrochemical industry market in Thailand. Including the latest The business rehabilitation of Thai Airways International Public Company Limited that occurred recently.

2. State Enterprise Capital Act that makes processing The Petroleum Authority of Thailand, a PTT Public Company Limited, has provided the government with revenue generated from PTT's growth in the Thai capital market and

3.Foreign Business Act Some claim that this law will allow foreign companies to dominate Thailand's retail and wholesale businesses. and causing small entrepreneurs in Thailand and SME businesses to be affected.

In fact, foreign companies that came to hold shares in such businesses during the crisis Later, they all sold their shares back to Thai companies. Whether it is the Casino group and Makro Carrefour, therefore, the issue of concern about foreign companies owning retail and wholesale businesses in Thailand is not yet a main issue.

At present, the Thai retail and wholesale business is still under the control of large Thai businesses or capital and has a greater impact on SME or small business operators than the control of foreign companies.

Personally, I am of the opinion that the business model has changed. The Foreign Business Act also needs to be considered in order to provide more opportunities for foreigners to do business in Thailand with convenience and speed. The idea of ​​reserving business rights for only Thai people is probably an outdated idea. (except for essential businesses only) Currently, there are businesses that do not have borders through various online platforms. Especially service businesses do not need to be registered in Thailand.

Therefore, it makes Thailand more likely to adjust its business strategy and allow talented people to come and do business in Thailand and how to create Thai people to compete with foreign businesses. Rather than focusing on protecting only Thai people, the original concept seems to be quite outdated.

My important experience
During the third period of the Thai economic crisis

During the Thai economic crisis at that time, it was an opportunity for international law firms, including myself, to gain experience working in resolving debt problems of many Thai financial institutions. Becoming a consultant for purchases, mergers and acquisitions, with the opportunity to participate in the rehabilitation plans of 56 financial institutions that were closed down, whether it be due diligence, examining the rehabilitation plans. to be a representative of Thai shareholders or foreign stocks in stock trading negotiations During the said period There are many places together.

For myself, I had the opportunity to work in negotiating business transactions for financial institutions. Whether it was the acquisition negotiations between Thai Thanu Bank and Ek Thanakit Finance Public Company Limited before the crisis, and the purchase of shares of DBS Bank Singapore and Thai Thanu Bank

And after the 2540 crisis, there was a need to increase capital of many commercial banks that issued SLIP instruments, such as Kasikorn Bank. Bank of Ayudhya Thai Military Bank

The Baker & McKenzie office was also involved. Personally, for me, I consider Deal SLIP of Kasikorn Bank to be the deal that I am most proud and impressed with in my working life. Because I have worked using financial and legal innovations, commercial banking, public law, tax law by working in coordination with relevant government agencies. Especially the Bank of Thailand Ministry of Finance at all times

In addition, during that time This allowed me to work with executives of financial institutions, including Mr. Banthoon Lamsam, Mr. Krit Rattanarak, Mr. Pornsanong Tuchinda, Mr. Pin Chakkaphak, Mr. Banyong Phongpanich, Dr. Thanong Pittaya, Dr. Supak Siwarak and many other executives of financial institutions and capital markets Considered to be a great experience in later work.

In addition to legal advisory work I have also had the opportunity to express opinions or participate in many legal opinions. In particular, there are 11 laws that are considered treason laws, whether they are business rehabilitation laws or bankruptcy laws. Foreign Business Laws to the media and various institutions and wrote several articles on the subject in the Finance and Banking Journal.

During that time I have also been approached to help with government work, such as being approached to serve as a board member of Krung Thai Bank. In an era where bank structures must be restructured I served as a director for 8 months and then resigned. Joining the Krungthai Bank Board of Directors which is a state enterprise It was another good experience and the last time I wanted to serve as a board member in a state enterprise.

After that, in 2542, I was invited by Mr. Chanchai Jaruwat to serve as a director of Siam Piwat Company Limited, formerly known as Bangkok Intercontinental Hotels Company Limited (BIHC). ) The current owner of Siam and Siam Paragon shopping centers as well, by Mr. Chanchai Jaruwat, I got to know while working at Krung Thai Bank.

Becoming a director in Siam Piwat Company I had the opportunity to learn and get to know directors who are famous and have experience in the bureaucracy and banks. Being a director of Siam Piwat Company It is an invaluable work experience. and is useful in legal consulting work And later, when I retired from work, I became a director in another company. I have been able to use this experience very well and currently I am still a director of this company. And it is considered to be my longest tenure as a director.

Another important role is Being involved as a lecturer Thai Institute of Directors Association which was initiated by Mr. Chanchai Jaruwat as a trainee and trainer. (which was established by the Stock Exchange of Thailand The Bank of Thailand and the SEC Office established after the Tom Yum Kung crisis) with the IOD playing a role in developing and promoting good corporate governance. Good Corporate Company is considered an institution to promote good corporate governance after the Tom Yum crisis. Shrimp of financial institutions and Thai listed companies that had to go bankrupt because of a lack of good governance principles

It can be considered that this institution has produced a large number of professional directors. I have been involved as a lecturer since the first edition of more than 200 generations, and been a committee member for many periods until now I have been appointed chairman of the board of this IOD institute (in May 2565), which I intend to promote the business of This institute is to continue strengthening good corporate governance in Thailand.

Thoughts from working experiences during the said period

I consider my experience working in the legal profession to be an important period in the success of me and Baker & McKenzie. and became well-known in the financial business circles and capital markets later on

I have some ideas for the work of the new generation as follows.

1. Must develop and acquire new knowledge The Baker & McKenzie office is well-equipped to develop knowledge of the law, especially the new business rehabilitation law. The office and network have brought in the knowledge and experience of lawyers from abroad to help with the work. By bringing in lawyers from Hong Kong, Singapore or the United States who have knowledge in business rehabilitation. To give lectures to the office's own lawyers and clients. or preparation for VAT that I had studied from foreign law before

Study to acquire knowledge first and plan in advance so that you can work with quality and be trusted by your clients. Seeking knowledge about new laws of related foreign countries is very necessary in developing the quality of work and success.

2. Must have the opportunity to work. Once you have knowledge, you must have the opportunity to do your assigned work well. When you have the opportunity to work, you have to do your best. Some people have the opportunity to work but without the knowledge, they cannot be successful in their work.

3. Giving and disseminating knowledge. From 2535 until the present, I began writing books, articles, and teaching seriously. Including giving lectures to provide knowledge to various institutions. and giving interviews to many media outlets about the legal work that we do all the time (without violating the disclosure of client secrets). As a result, the office and I are well known in the financial and capital market circles as well as the academic sector. and government the mass media industry as well. In addition, I have also been able to work on various committees. Both the government sector and many academic departments. Which also helps create experience for myself.

4. It must be the right time for the work being done. People who are talented and knowledgeable have opportunities. But the timing was not right and he was unable to demonstrate his abilities to be accepted by the business community or clients because of his age, work experience. It may still not be accepted by the client.

I consider the period 2540-2544. It must be considered a time when I had experience working for more than 20 years and was approximately 40 years old. This gave my clients confidence in seeing that we were experienced and knowledgeable in the work we did. Therefore, it will build confidence and trust among customers.

5. Success doesn't happen because of us alone. But you must have people around you. Success in work does not come from the work of one person. Workers must have people around them, no matter what. Supportive boss, co-workers There are subordinates who help with the work, there are adults, executives, and clients who support the success of the current work.

To me, everyone in the Baker & McKenzie office - bosses, partners, attorneys and all the hard-working employees. It must be considered a part of my and the organization's success. Including senior executives in the industry and customers who have supported the work that has been done for 43 years. Without these people, it would be difficult to be successful in work.

Being grateful to those who have helped and appreciating what those people have done for us. (or gratitude) will make the work successful.

look ahead

During this period, a new round of crisis in Thailand may occur again. Therefore, I would like to see a draft law prepared to deal with the impending crisis. We should not wait for the country to have a crisis before thinking of making excuses. Whether it is a law like the Tom Yum Kung crisis But Thailand should be prepared to predict in advance that Legislation possible It will be possible to prevent and alleviate crises. And do not let the law be an obstacle in promoting and developing the economy.

An example occurred during COVID-19. There have been attempts to propose enacting omnibus laws to resolve crises similar to those in Singapore and Indonesia, but were unsuccessful. (I have previously written an article on this subject in the Finance and Banking Journal) because the government is afraid of the trend of political parties that may not accept it. and agree to pass this law

Even though the Prime Minister's government Gen. Prayut There will be a committee to urgently update the law that has been working for a long time at the end of the year. Even though I am involved, I see that the progress may not be as expected.

I will bring my experiences during the period when I was a part of the national reform to tell you in the next episode.