Board of Directors Authority Regarding Rehabilitation Plan Administration
Company A Limited submitted a request to the Board of Directors of Company A to act as the representative creditor. The creditors of Company A did not object to the request for rehabilitation but did object to Company A acting as the representative creditor. They also proposed B Limited as the rehabilitation plan administrator. The court issued an order for the rehabilitation of the business but has not yet issued an order appointing an administrator. The following issues are presented before the court, prior to the court issuing an order appointing an interim administrator: (a) Can the Board of Directors of Company A transfer the sum of 100 million baht to pay debts to other creditors who are in default? (b) Can the court immediately issue an order appointing the Board of Directors of Company A as the rehabilitation plan administrator? (c) Why or why not, considering that the court has issued an order for the rehabilitation of the business but has not yet appointed an administrator, answer question (a). (a) The power to manage the business and assets of the Board of Directors is the power of the interim administrator appointed by the court during the period when an interim administrator has not yet been appointed. This power belongs to the Receiver of Property. Therefore, the Board of Directors’ power to transfer funds to pay debts to Company A’s creditors is because it is managing the assets of the debtor, pursuant to the Bankruptcy Act B.E. 2483 amended by the Bankruptcy Act No. 5, B.E. 2542, Section 90/20, paragraph (2)(b). The court has the power to appoint the Board of Directors of Company A as the interim administrator. The interim administrator can be one person or the administrator of the debtor, pursuant to Section 90/20, paragraph (1)(c). The court can immediately issue an order appointing the Board of Directors of Company A as the rehabilitation plan administrator in this case. The opposing creditor has proposed B Limited as the rehabilitation plan administrator. The Receiver of Property must promptly convene all creditors to consider and select the person to be the rehabilitation plan administrator, pursuant to Section 90/17, paragraph (1).
Mayonthai is a civil servant of the Customs Department, holding a central position and managing funds.