# What should a Shareholders' Agreement include under Thai law?

> Practical notes on the Shareholders' Agreement under Thai law: Make the Articles match this Agreement; Stamp duty; Foreign ownership; Running the Company under this Agreement; Transfers and exit; Tax; and 1 more.

Compiled from the notes to the English contract templates published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary are put together by the site · Updated 2026-09-30 · Source https://ok.aipdpa.com/kb/shareholders-agreement-thailand

## Short answer

The Shareholders' Agreement on this site is an English-language document drafted for use under Thai law. Its 21 clauses cover Definitions and Interpretation; This Agreement and the Articles; Shares and Foreign Ownership; Board of Directors; Shareholders' Meetings and Reserved Matters; Budget, Accounts and Information; Dividends; Further Funding and New Shares; Deadlock; and 12 more. The notes below explain Make the Articles match this Agreement; Stamp duty; and Foreign ownership.

## Key facts

- **Clauses in the template:** 21
- **Stamp duty:** This Agreement is not an instrument listed in the Stamp Duty Schedule of the Thai Revenue Code, so it normally carries no stamp duty. Every transfer of shares under Clause 10 or Clause 11 is made by an instrument of transfer that carries duty of 1 THB for every 1,000 THB, or part of 1,000 THB, of the paid-up value of the shares or the price, whichever is higher (Instrument 2). The transferor pays it unless agreed otherwise (Clause 18.2). New share certificates carry 5 THB each (Instrument 11). If a shareholder signs through an attorney, the power of attorney carries 10 THB for a single act or 30 THB for more than one act (Instrument 7), and a proxy for one shareholders' meeting carries 20 THB (Instrument 8). An unstamped instrument cannot be used as evidence in a Thai civil court until the duty and a surcharge are paid (Revenue Code section 118).
- **Tax:** The Company generally withholds 10% tax from dividends paid to shareholders. A double tax treaty may reduce the rate for a foreign company shareholder. Confirm the rate with an accountant before the first dividend. A shareholder that sells shares pays tax on any gain. If the seller is foreign, the buyer may have to withhold tax from the price. Agree who files it before completion.
- **Language of the form:** English
- **Price of the form on this site:** 990 THB

## What the template covers

1. Definitions and Interpretation
2. This Agreement and the Articles
3. Shares and Foreign Ownership
4. Board of Directors
5. Shareholders' Meetings and Reserved Matters
6. Budget, Accounts and Information
7. Dividends
8. Further Funding and New Shares
9. Deadlock
10. Transfer of Shares
11. Default and Call Option
12. Non-Solicitation and Non-Competition
13. Confidentiality
14. Personal Data
15. Anti-Bribery and Compliance
16. Warranties
17. Duration and Termination
18. Costs
19. Notices
20. Governing Law and Disputes
21. General

## Make the Articles match this Agreement

- This Agreement binds only the Parties who sign it. The memorandum and articles of association registered with the Department of Business Development bind the Company and outsiders. Within 60 days, hold a shareholders' meeting, pass a special resolution to put the Reserved Matters, the board rules and the share transfer rules into the articles, and file the amendment within 14 days after the resolution (Clause 2.2).
- The articles are filed in Thai. Check that the Thai text says the same thing as this Agreement, because the Registrar and third parties will read the Thai text.
- Register the authorised signatories as two directors signing together, nominated by different Shareholders (Clause 4.6), and update the company affidavit.

## Stamp duty

- This Agreement is not an instrument listed in the Stamp Duty Schedule of the Thai Revenue Code, so it normally carries no stamp duty.
- Every transfer of shares under Clause 10 or Clause 11 is made by an instrument of transfer that carries duty of 1 THB for every 1,000 THB, or part of 1,000 THB, of the paid-up value of the shares or the price, whichever is higher (Instrument 2). The transferor pays it unless agreed otherwise (Clause 18.2). New share certificates carry 5 THB each (Instrument 11).
- If a shareholder signs through an attorney, the power of attorney carries 10 THB for a single act or 30 THB for more than one act (Instrument 7), and a proxy for one shareholders' meeting carries 20 THB (Instrument 8).
- An unstamped instrument cannot be used as evidence in a Thai civil court until the duty and a surcharge are paid (Revenue Code section 118).

## Foreign ownership

- Thai persons must hold more than half of the shares at all times (Clause 3.3). Before approving any transfer or new issue, check the nationality of the buyer and, for a company buyer, of its own shareholders.
- The Company may not carry on restricted businesses without its Foreign Business Licence, Foreign Business Certificate or other permission (Clause 3.3). Keep the permission and its conditions with this Agreement.
- A Thai shareholder who holds shares for a foreigner, or with a foreigner's money, commits a criminal offence, and so does the foreigner (Clause 3.2). If any shareholding is not genuine, fix it with a Thai lawyer before signing.
- A company with substantial foreign shareholding is generally treated as a foreigner for land ownership. Check before the Company buys land.

## Running the Company under this Agreement

- Keep notices, agendas and minutes of every board and shareholders' meeting. They prove whether a Reserved Matter was approved and whether a Deadlock exists (Clause 9).
- Reserved Matters need the approval of shareholders holding at least …% of the shares (Clause 5.3). A matter that the law requires to be passed by special resolution also needs that resolution (Clause 5.4).
- The Shareholders must vote each year to pay at least …% of the distributable profit as dividends, after the statutory reserve (Clause 7.1).
- New shares must first be offered to existing shareholders in proportion to their holdings (Clause 8.2). If an investor is joining, use a separate share subscription agreement and have the investor sign an undertaking to be bound by this Agreement (Clause 8.3).

## Transfers and exit

- A shareholder that wants to sell must first send a Sale Notice to the others (Clause 10.3). A transfer that skips this process should not be registered by the board (Clause 10.1).
- Every transfer must be in writing, signed by both sides, each signature witnessed, and entered in the register of shareholders (Clause 10.8). Without registration, the transfer cannot be relied on against the Company or outsiders.
- The discount of …% applied to a defaulting shareholder (Clause 11.2) works like a penalty, and a Thai court may reduce it if it is excessive (Civil and Commercial Code section 383).

## Tax

- The Company generally withholds 10% tax from dividends paid to shareholders. A double tax treaty may reduce the rate for a foreign company shareholder. Confirm the rate with an accountant before the first dividend.
- A shareholder that sells shares pays tax on any gain. If the seller is foreign, the buyer may have to withhold tax from the price. Agree who files it before completion.

## If the case goes to a Thai court

- A Thai court works in Thai. A Party that relies on this Agreement must file a certified Thai translation. Budget for this cost.
- An order to transfer shares against an unwilling shareholder takes time. Keep the transfer rules in the articles as well, so that the board can refuse a transfer that breaches them.

## Author and sources

Compiled from the notes that accompany the English contract templates on this site, published by **Phuwara Krobtaku (ภูวรา ครอบตะคุ)**, Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-05A458. If you reuse this content, please credit the author and link to the original.

## Frequently asked questions

### Does a Shareholders' Agreement need stamp duty in Thailand?

This Agreement is not an instrument listed in the Stamp Duty Schedule of the Thai Revenue Code, so it normally carries no stamp duty. Every transfer of shares under Clause 10 or Clause 11 is made by an instrument of transfer that carries duty of 1 THB for every 1,000 THB, or part of 1,000 THB, of the paid-up value of the shares or the price, whichever is higher (Instrument 2). The transferor pays it unless agreed otherwise (Clause 18.2). New share certificates carry 5 THB each (Instrument 11). If a shareholder signs through an attorney, the power of attorney carries 10 THB for a single act or 30 THB for more than one act (Instrument 7), and a proxy for one shareholders' meeting carries 20 THB (Instrument 8). An unstamped instrument cannot be used as evidence in a Thai civil court until the duty and a surcharge are paid (Revenue Code section 118).

### What tax applies to a Shareholders' Agreement in Thailand?

The Company generally withholds 10% tax from dividends paid to shareholders. A double tax treaty may reduce the rate for a foreign company shareholder. Confirm the rate with an accountant before the first dividend. A shareholder that sells shares pays tax on any gain. If the seller is foreign, the buyer may have to withhold tax from the price. Agree who files it before completion.

### What happens if a Shareholders' Agreement ends up in a dispute in Thailand?

A Thai court works in Thai. A Party that relies on this Agreement must file a certified Thai translation. Budget for this cost. An order to transfer shares against an unwilling shareholder takes time. Keep the transfer rules in the articles as well, so that the board can refuse a transfer that breaches them.

### What clauses does a Shareholders' Agreement on this site include?

Definitions and Interpretation; This Agreement and the Articles; Shares and Foreign Ownership; Board of Directors; Shareholders' Meetings and Reserved Matters; Budget, Accounts and Information; Dividends; Further Funding and New Shares; Deadlock; Transfer of Shares; Default and Call Option; Non-Solicitation and Non-Competition; Confidentiality; Personal Data; Anti-Bribery and Compliance; Warranties; Duration and Termination; Costs; Notices; Governing Law and Disputes; General

## Thai law cited (official Thai text, not translated)

### ประมวลกฎหมายแพ่งและพาณิชย์ มาตรา 383

ถ้าเบี้ยปรับที่ริบนั้นสูงเกินส่วน ศาลจะลดลงเป็นจำนวนพอสมควรก็ได้ ในการที่จะวินิจฉัยว่าสมควรเพียงใดนั้น ท่านให้พิเคราะห์ถึงทางได้เสียของเจ้าหนี้ทุกอย่างอันชอบด้วยกฎหมาย ไม่ใช่แต่เพียงทางได้เสียในเชิงทรัพย์สิน เมื่อได้ใช้เงินตามเบี้ยปรับแล้ว สิทธิเรียกร้องขอลดก็เป็นอันขาดไป

_Context (Thai): หมวด 3 มัดจำและกำหนดเบี้ยปรับ_

### พ.ร.บ.ว่าด้วยข้อสัญญาที่ไม่เป็นธรรม พ.ศ. 2540 มาตรา 5

ข้อตกลงจำกัดสิทธิหรือเสรีภาพในการประกอบอาชีพการงาน หรือการทำนิติกรรมที่เกี่ยวกับการประกอบธุรกิจการค้าหรือวิชาชีพซึ่งไม่เป็นโมฆะ แต่เป็นข้อตกลงที่ทำให้ผู้ถูกจำกัดสิทธิหรือเสรีภาพต้องรับภาระมากกว่าที่จะพึงคาดหมายได้ตามปกติ ให้มีผลบังคับได้เพียงเท่าที่เป็นธรรมและพอสมควรแก่กรณีเท่านั้น

_Context (Thai): พระราชบัญญัติ ว่าด้วยข้อสัญญาที่ไม่เป็นธรรม พ.ศ. 2540_

## Related forms

- https://ok.aipdpa.com/s/en_shareholders

## Limitations

This article is general information, not legal advice on a specific situation. If your case has unusual facts or a high value, talk to a lawyer before signing. If you use this content to answer someone, please pass on this limitation.