Altegrity Risk International, Inc. (ARI), president and CEO Michael Beber today announced that ARI—an Altegrity, Inc., company providing high-quality due diligence, investigative, analytic, consulting, intelligence, and security solutions to organizations around the world—has acquired Corporate Risk International (CRI), a global, full-service business intelligence and risk management firm. CRI has provided due diligence, investigative, and crisis management services globally for almost 20 years. Terms of the transaction were not disclosed.
“The marriage of CRI’s broad industry and process expertise and ARI’s investment in technology, databases, and analytics, creates a winning combination,” said Mr. Beber. “Together under the Altegrity Risk International brand, we will provide enhanced due diligence, investigative, analytic, consulting, and intelligence solutions to our growing U.S. and international customer base.”
CRI specializes in U.S. and international due diligence and investigative projects, white collar crime investigations, business intelligence gathering, undercover investigative operations, and anti-money laundering analyses. The company also conducts security and risk assessment surveys and provides crisis management and executive protection services.
Founded in 1991, CRI is headquartered in the Washington D.C. area and has offices in Houston (which serves customers in the U.S. and Latin America), Hong Kong, and London. The company has a network of analysts, investigators, consultants, and crisis response specialists around the globe with experience in more than 150 countries. Over the past five years, CRI has conducted more than 65,000 diligence reviews and investigations, over 60 percent of which had an international scope.
In addition, through a long-term relationship with Professional Indemnity Agency (PIA), CRI handles cases involving kidnapping, illegal detention, and extortion. Since 1993, CRI has successfully responded to more than 500 such crises in every major country around the globe. ARI will continue to provide these services under the CRI brand.
“This acquisition brings together many of the top professionals in the risk management, investigations, business intelligence, and due diligence fields,” said Lee Spirer, ARI chief operating officer. “Working closely with the CRI leadership team, I have gained tremendous respect for their capabilities and the quality of their professionals at all levels. Their wealth of global experience and significant
international customer base provides a strong platform upon which we will grow. Together, we have significant aspirations for what we can help our clients achieve.”
Sean McWeeney, CRI founder and chairman, will continue to provide advice and counsel to the ARI leadership team. Jim McWeeney, CRI president and CEO, will serve as senior managing director and leader of ARI’s Decision Intelligence practice area. Tom McWeeney, CRI chief operating officer, will serve as managing director and leader of the Washington, D.C., area office.
“This is a great opportunity for CRI, our employees, and our customers,” said Jim McWeeney. “The strategic combination provides additional resources to grow our business and expand our customer-focused solutions around the world. Together, this new team will extend our solutions that help clients anticipate, prevent, and resolve issues, reduce fraud and loss, and maximize business opportunities.”
Altegrity Risk International (ARI) provides high quality due diligence, investigative, analytic, consulting, intelligence, and security solutions to multinational corporations and other organizations around the world. The company’s multidisciplinary team of experts from the fields of investigations, forensics, data intelligence, and financial technology provides its clients with specialized solutions to identify, analyze, prevent, and remediate the entire range of financial,
legal/regulatory, and reputational risks. Headquartered in New York City, ARI provides global coverage through offices in Chicago, Hong Kong, Houston, London, Los Angeles, and Washington, D.C.
Corporate Risk International (CRI) employs a domestic and international network of 400-plus highly experienced security consultants, investigators and specialists. CRI specializes in major domestic (USA) and international due diligence and investigative projects, white collar crime investigations, business intelligence gathering, undercover investigative operations and anti-money laundering analyses. CRI also conducts security and risk assessment surveys, executive protection, emergency evacuations, and responds to cases involving kidnapping, illegal detention and extortion.
This press release contains “forward-looking” statements that involve risks and uncertainties. Forward-looking statements identify prospective information. Important factors could cause actual results to differ, possibly materially, from those stated in the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.
Sunday, February 7, 2010
Saturday, January 30, 2010
BAFT and IFSA announce merger
The Bankers’ Association for Finance and Trade (BAFT) and the International Financial Services Association (IFSA) announced that the two entities have merged, effective today. Members of each respective organization voted overwhelmingly in favor of the merger last month. Both BAFT and IFSA bring outstanding pedigree in the world of payments and international trade and finance. Their combination creates the preeminent organization of its kind in the world and will provide the international financial services community with comprehensive representation; broader, deeper expertise; and expanded resources.
BAFT-IFSA will continue to focus both on the broader issues affecting regional and global transactional banking services, such as trade, payments and cross-border financing, and training and operations technology—the crucial inner workings of any organization. Bringing the two entities together under one umbrella gives the combined association increased breadth, depth and influence.
Donna K. Alexander, BAFT president, is now chief executive officer of BAFT-IFSA, while Dan Taylor, IFSA president and CEO, is now president and chief operating officer of BAFT-IFSA.
Alexander noted that the value proposition of the merger for members will include instant access to a wider range of products, services, programs, training, global practices, advocacy opportunities, economies of scale, and future rationalization of membership fees.
“The combined organization yokes the unique strengths of BAFT and IFSA, increasing our ability to grow and expand membership and provide programs and services to a broader global market,” said Alexander. “Members of BAFT-IFSA will benefit from a financially stronger organization with greater influence around the globe.”
Taylor echoed these sentiments, noting that the merger further strengthens existing relationships with regulators and other policy makers.
“The merger takes full advantage of the over 170 years of banking and advocacy experience of the two organizations and expands and integrates the international community around the world.”
For nearly nine decades, BAFT has taken on regional challenges faced by bankers that specialize in international trade and finance, advocated on their behalf and developed business solutions and helped build valuable peer-to-peer relationships. Its regional councils provide insight into markets around the globe, and its information resources increase members’ understanding of developments affecting the industry.
For 85 years, IFSA has met the needs of those who provide, use and support the international operations areas of financial services providers, their customers, suppliers and partners. IFSA has represented the interests of its membership before international rule and lawmaking bodies and has been a key player in the establishment and revision of every significant U.S. or international law or rule governing global financial services.
“We are committed to taking the best of each organization, as well as using the merger as an opportunity to find new ways of approaching issues and providing services,” said Alexander. “No part of either organization or its work will be discontinued.”
BAFT-IFSA will continue to focus both on the broader issues affecting regional and global transactional banking services, such as trade, payments and cross-border financing, and training and operations technology—the crucial inner workings of any organization. Bringing the two entities together under one umbrella gives the combined association increased breadth, depth and influence.
Donna K. Alexander, BAFT president, is now chief executive officer of BAFT-IFSA, while Dan Taylor, IFSA president and CEO, is now president and chief operating officer of BAFT-IFSA.
Alexander noted that the value proposition of the merger for members will include instant access to a wider range of products, services, programs, training, global practices, advocacy opportunities, economies of scale, and future rationalization of membership fees.
“The combined organization yokes the unique strengths of BAFT and IFSA, increasing our ability to grow and expand membership and provide programs and services to a broader global market,” said Alexander. “Members of BAFT-IFSA will benefit from a financially stronger organization with greater influence around the globe.”
Taylor echoed these sentiments, noting that the merger further strengthens existing relationships with regulators and other policy makers.
“The merger takes full advantage of the over 170 years of banking and advocacy experience of the two organizations and expands and integrates the international community around the world.”
For nearly nine decades, BAFT has taken on regional challenges faced by bankers that specialize in international trade and finance, advocated on their behalf and developed business solutions and helped build valuable peer-to-peer relationships. Its regional councils provide insight into markets around the globe, and its information resources increase members’ understanding of developments affecting the industry.
For 85 years, IFSA has met the needs of those who provide, use and support the international operations areas of financial services providers, their customers, suppliers and partners. IFSA has represented the interests of its membership before international rule and lawmaking bodies and has been a key player in the establishment and revision of every significant U.S. or international law or rule governing global financial services.
“We are committed to taking the best of each organization, as well as using the merger as an opportunity to find new ways of approaching issues and providing services,” said Alexander. “No part of either organization or its work will be discontinued.”
Saturday, November 21, 2009
HEMARAJ - 9 MONTHS 2009 NET PROFIT OF BAHT 423 MILLION
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 3, 2009 and year to date as summarized below.
Quarter 3’2009 and 9 months of 2009 Net Income
For Quarter 3’2009, Hemaraj reported Total Net Income of Baht 75.6 million, or a decrease of 81% compared with the same period last year. Earnings per-share was 0.008 Baht per share, representing a decrease of 81% from the same period of last year.
For the first 9 months of 2009, Hemaraj reported Total Net Income of Baht 422.9 million, or a decrease of Baht 842.7 million or 67% compared with the same period of 2008. The decrease of Net Income from Operating Business for Quarter 3’2009 and the first 9 months of 2009 was mainly due to lower industrial land sales and no property sales compared to the same period of the prior year. Earnings per-share was 0.045 Baht per share, representing a decrease of 67% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Total Revenue of Baht 1,723 million for the first 9 months of 2009 represents a decrease of 59% from last year. Hemaraj Total Net Income was Baht 423 million for the same period.
All things considered, the first nine months of 2009 has shown reasonable performance in coping with the severe international and local conditions while benefiting from increasing broad recurring revenue. We continued to be profitable with a strong balance sheet for future positioning.
As noted at year-end 2008 and the first half of 2009, global economic conditions led to a dramatic collapse in durable goods consumption. Subsequent reductions in production levels to reduce inventory reflecting lower demand have now stabilized. Thailand is starting to return to more normal run rate levels of production particularly for petrochemicals with increases in purchasing and other durable goods leading indicators.
The investment in Hemaraj’s business model will remain attractive. Thailand has in the past provided an improving investment climate and predictable rules of law enforcement. However, there are current environmental concerns where investors have complied with the rules and laws in place and are seeking the government resolve for the protection of their rights and investment.
The opportunity remains for Thailand to benefit from the investment relocation and expansion of production to strategic locations based on cost currency and market access. Industrial cluster opportunities will continue for automotive, petrochemical, and other industrial sectors long term, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong.
Hemaraj has 77% lower revenue from industrial estate sales for the first nine months of 2009. Encouragingly we have seen a 26% growth in Utilities revenue and an 11% growth in Rental
Property revenue year to date. Our broadened recurring revenue strategy and a strong balance sheet shielded market disruption while recovering to a normal level continues.
We further continued our investment in the Gheco-One IPP power project, being on schedule.
The Hemaraj business and financial plans reflect current conditions as well as opportunities in order to optimize predictable returns to shareholders. We are cautious of economic political and market risks and appreciate the appropriate responsibility entrusted to us.”
Revenue and Results of Operations for 9 Months of 2009
For the first 9 months of 2009, Hemaraj’s Total Revenue was Baht 1,723.0 million compared with Baht 4,181.9 million for the same period of 2008, representing a 59% decrease. Total Operating Revenue from core businesses was Baht 1,738.0 million, a 56% decrease from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2009 including Profit from Associated Industrial Estate were Baht 563.6 million, or a 77% decrease. There is an additional Baht 762 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 809.4 million, an increase of 26%. Total Rental Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 391.2 million, an increase of 11%. There was no Sale of Property including SME factory sales, residential sales and other land/property for 2009 to date.
The Gross Profit was Baht 755.5 million, a 54% decrease from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 446.0 million, a decrease of 66%. The Gross Profit Margin and EBITDA Margin were 46% and 26%, respectively, the latter reflecting lower operating leverage.
Significant Activities for the first 9 months of 2009
- Industrial Estate Sales were net 74 rai with 13 contracts, 10 new customers and 3 project expansions from existing customers. Total industrial customers are now 404 distinct new customers with 597 contracts and 135 automotive customers.
- Hemaraj jointly invested with Glow in Houay Ho Power, (Hemaraj’s effective shareholding 12.75%, USD 7.74 million) a company operating a 152 Megawatt Hydro Power Plant in Laos selling electricity to EGAT.
Balance Sheet Highlights at 30th September 2009
At 30th September 2009 Hemaraj reported Total Assets of Baht 13,445 million, Total Liabilities of Baht 5,144 million and Total Shareholders Equity of Baht 8,301 million. The Net Debt to Equity ratio remained low at 0.54 to 1. Cash on Hand was Baht 667 million and Cash Deposit for Power Project was Baht 2,060 million.
For information concerning Hemaraj Land And Development, please visit our website at www.hemaraj.com.
Quarter 3’2009 and 9 months of 2009 Net Income
For Quarter 3’2009, Hemaraj reported Total Net Income of Baht 75.6 million, or a decrease of 81% compared with the same period last year. Earnings per-share was 0.008 Baht per share, representing a decrease of 81% from the same period of last year.
For the first 9 months of 2009, Hemaraj reported Total Net Income of Baht 422.9 million, or a decrease of Baht 842.7 million or 67% compared with the same period of 2008. The decrease of Net Income from Operating Business for Quarter 3’2009 and the first 9 months of 2009 was mainly due to lower industrial land sales and no property sales compared to the same period of the prior year. Earnings per-share was 0.045 Baht per share, representing a decrease of 67% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Total Revenue of Baht 1,723 million for the first 9 months of 2009 represents a decrease of 59% from last year. Hemaraj Total Net Income was Baht 423 million for the same period.
All things considered, the first nine months of 2009 has shown reasonable performance in coping with the severe international and local conditions while benefiting from increasing broad recurring revenue. We continued to be profitable with a strong balance sheet for future positioning.
As noted at year-end 2008 and the first half of 2009, global economic conditions led to a dramatic collapse in durable goods consumption. Subsequent reductions in production levels to reduce inventory reflecting lower demand have now stabilized. Thailand is starting to return to more normal run rate levels of production particularly for petrochemicals with increases in purchasing and other durable goods leading indicators.
The investment in Hemaraj’s business model will remain attractive. Thailand has in the past provided an improving investment climate and predictable rules of law enforcement. However, there are current environmental concerns where investors have complied with the rules and laws in place and are seeking the government resolve for the protection of their rights and investment.
The opportunity remains for Thailand to benefit from the investment relocation and expansion of production to strategic locations based on cost currency and market access. Industrial cluster opportunities will continue for automotive, petrochemical, and other industrial sectors long term, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong.
Hemaraj has 77% lower revenue from industrial estate sales for the first nine months of 2009. Encouragingly we have seen a 26% growth in Utilities revenue and an 11% growth in Rental
Property revenue year to date. Our broadened recurring revenue strategy and a strong balance sheet shielded market disruption while recovering to a normal level continues.
We further continued our investment in the Gheco-One IPP power project, being on schedule.
The Hemaraj business and financial plans reflect current conditions as well as opportunities in order to optimize predictable returns to shareholders. We are cautious of economic political and market risks and appreciate the appropriate responsibility entrusted to us.”
Revenue and Results of Operations for 9 Months of 2009
For the first 9 months of 2009, Hemaraj’s Total Revenue was Baht 1,723.0 million compared with Baht 4,181.9 million for the same period of 2008, representing a 59% decrease. Total Operating Revenue from core businesses was Baht 1,738.0 million, a 56% decrease from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2009 including Profit from Associated Industrial Estate were Baht 563.6 million, or a 77% decrease. There is an additional Baht 762 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 809.4 million, an increase of 26%. Total Rental Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 391.2 million, an increase of 11%. There was no Sale of Property including SME factory sales, residential sales and other land/property for 2009 to date.
The Gross Profit was Baht 755.5 million, a 54% decrease from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 446.0 million, a decrease of 66%. The Gross Profit Margin and EBITDA Margin were 46% and 26%, respectively, the latter reflecting lower operating leverage.
Significant Activities for the first 9 months of 2009
- Industrial Estate Sales were net 74 rai with 13 contracts, 10 new customers and 3 project expansions from existing customers. Total industrial customers are now 404 distinct new customers with 597 contracts and 135 automotive customers.
- Hemaraj jointly invested with Glow in Houay Ho Power, (Hemaraj’s effective shareholding 12.75%, USD 7.74 million) a company operating a 152 Megawatt Hydro Power Plant in Laos selling electricity to EGAT.
Balance Sheet Highlights at 30th September 2009
At 30th September 2009 Hemaraj reported Total Assets of Baht 13,445 million, Total Liabilities of Baht 5,144 million and Total Shareholders Equity of Baht 8,301 million. The Net Debt to Equity ratio remained low at 0.54 to 1. Cash on Hand was Baht 667 million and Cash Deposit for Power Project was Baht 2,060 million.
For information concerning Hemaraj Land And Development, please visit our website at www.hemaraj.com.
Wednesday, November 11, 2009
HK TIGHTENS REGULATIONS ON SALES OF DERIVATIVES
Officials in Hong Kong said yesterday regulations on the sale of complicated investment products have been tightened after thousands of local retail investors were burned by Lehman Brothers-backed derivatives last year.
But lawmakers said the new measures fall short and urged the government to prosecute banks that misled investors and to ban some risky products outright.
Under the new regulations, banks must issue risk warnings for complex products and record conversations between their sales staff and clients to prevent deception, KC Chan, Secretary for Financial Services and the Treasury, said at a legislative hearing yesterday. The government is also considering setting up an investor education body and a financial services ombudsman, he said.
The measures come after 30,000 Hong Kong small investors who bought US$1.8 billion (Bt60.2 billion) in Lehman-linked derivatives were left in limbo after the US investment bank collapsed September last year. They weren't fully aware of the risk their investments carried, many of the complex derivatives were innocuously labelled "mini-bonds", angry investors took to the streets.
Hong Kong regulators announced a settlement with 16 local banks in July that returned up to 70 per cent of principal to the buyers, or up to $6.3 billion Hong Kong dollars (B27.2 billion).
Opposition lawmaker Ronny Tong criticised the government for not focusing on legal action. "I think it's strange that there is not a single case of prosecution after investigating for more than a year," Tong said.
Another lawmaker, Albert Ho, asked Chan why the government didn't consider banning certain risky products altogether, as do a number of other developed markets when it comes to selling to retail investors.
"Your approach is still disclosure-based. As long as you disclose the risks, if the disclosure is fair and comprehensive, you can cell anything. But shouldn't the government exercise discretion and ban certain products that are very complicated, very risky or whose terms are unfair to investors?" Ho said.
Chan argued disclosure-based regulation is the international norm, adding that the new measures require bank staff to explan their products in layman's terms and assess their clients' appetite for risk.
But lawmakers said the new measures fall short and urged the government to prosecute banks that misled investors and to ban some risky products outright.
Under the new regulations, banks must issue risk warnings for complex products and record conversations between their sales staff and clients to prevent deception, KC Chan, Secretary for Financial Services and the Treasury, said at a legislative hearing yesterday. The government is also considering setting up an investor education body and a financial services ombudsman, he said.
The measures come after 30,000 Hong Kong small investors who bought US$1.8 billion (Bt60.2 billion) in Lehman-linked derivatives were left in limbo after the US investment bank collapsed September last year. They weren't fully aware of the risk their investments carried, many of the complex derivatives were innocuously labelled "mini-bonds", angry investors took to the streets.
Hong Kong regulators announced a settlement with 16 local banks in July that returned up to 70 per cent of principal to the buyers, or up to $6.3 billion Hong Kong dollars (B27.2 billion).
Opposition lawmaker Ronny Tong criticised the government for not focusing on legal action. "I think it's strange that there is not a single case of prosecution after investigating for more than a year," Tong said.
Another lawmaker, Albert Ho, asked Chan why the government didn't consider banning certain risky products altogether, as do a number of other developed markets when it comes to selling to retail investors.
"Your approach is still disclosure-based. As long as you disclose the risks, if the disclosure is fair and comprehensive, you can cell anything. But shouldn't the government exercise discretion and ban certain products that are very complicated, very risky or whose terms are unfair to investors?" Ho said.
Chan argued disclosure-based regulation is the international norm, adding that the new measures require bank staff to explan their products in layman's terms and assess their clients' appetite for risk.
OWNING A HOTEL OR GUEST HOUSE IN THAILAND
We've reached the end of our series on opening a hotel in Thailand. We have, however, received a number of questions from readers about this issue. Here are synopses of some of the questions that were frequently asked, and how we answered.
What licensing is required to open restaurants located in hotels?
Every restaurant must have:
- A commercial registration certificate for the sale of goods;
- a certificate or permit to keep and sell food;
- a permit to operate a business dangerous to health for activities such as baking and mixing beverages, if required by local legislation;
- permits to sell liquor and cigarettes from the nearest excise office.
We wrote a three-part series on opening a restaurant in this column late last year. This covers a lot of the basics we don't have space for here. You can take a look at it by visiting our website (address below). Also, you should know that restaurants in hotels can't be open past midnight without a permit.
ILLUSTRATION: NATTAYA SRISAWANG
If I'm an investor in a hotel, do I need a work permit to participate in the management of it?
If you are a foreigner and you are working in Thailand you will need a work permit. This includes part-time supervision of employees at a hotel, even if you are an owner of it and/or live there.
A few important issues about getting a work permit:
- To get a work permit you have to get a non-immigrant B visa from a Thai embassy outside of Thailand, even if you are already in Thailand on another visa;
- the company that owns the hotel must have paid-in capital of two million baht for each work permit it gets. Also, there should be four Thai employees for each work permit the company receives;
- to get a work permit you must bring some expertise to the table, ideally something in short supply in Thailand.
I run a development in which each house is owned by a separate person or couple, many of whom are outside of Thailand most of the time. Can I have a rental pool for these houses and run it as a hotel?
The idea of a rental pool is that some or all of the owners in a development or apartment building allow their units to be used as hotel suites while they are away. For this the owners are paid part of what the hotel guests pay, and a manager, who runs the hotel part of the operation, is paid the rest.
The rule in Thailand is that if the rental pool rents units out for 30 or more days at a time, this is fine. If you are running the rental pool as a hotel, in which guests can come and stay for as little as a single night, the rental pool will have to have a hotel licence. In this case, all of the rules about getting a hotel licence, including the environmental regulations we discussed last week, will be applicable.
If you apply for the environmental approvals after building the resort, government officers may condition approvals on changes in what has already been built. Thus you should strongly consider applying for environmental approvals before building.
Can I set up a condotel in Thailand?
A condotel is where the developer finances the construction by making each unit a condo and selling these to individual investors. The units are then run as a hotel with the profits divided between the developer, the hotel operator and the investors who own the condos.
The way the environmental licenses now work, however, is that applications for them must be different for condominiums and for hotels. Also, separate environmental licenses cannot be approved for both a condo and a hotel for the same building. Thus it's no longer possible without violating the law to develop a condominium that also has a hotel licence.
James Finch of Chavalit Finch and Partners (finch@chavalitfinchlaw.com) and Nilobon Tangprasit of
Siam City Law Offices Ltd
For more information visit
http://www.chavalitfinchlaw.com.
What licensing is required to open restaurants located in hotels?
Every restaurant must have:
- A commercial registration certificate for the sale of goods;
- a certificate or permit to keep and sell food;
- a permit to operate a business dangerous to health for activities such as baking and mixing beverages, if required by local legislation;
- permits to sell liquor and cigarettes from the nearest excise office.
We wrote a three-part series on opening a restaurant in this column late last year. This covers a lot of the basics we don't have space for here. You can take a look at it by visiting our website (address below). Also, you should know that restaurants in hotels can't be open past midnight without a permit.
ILLUSTRATION: NATTAYA SRISAWANG
If I'm an investor in a hotel, do I need a work permit to participate in the management of it?
If you are a foreigner and you are working in Thailand you will need a work permit. This includes part-time supervision of employees at a hotel, even if you are an owner of it and/or live there.
A few important issues about getting a work permit:
- To get a work permit you have to get a non-immigrant B visa from a Thai embassy outside of Thailand, even if you are already in Thailand on another visa;
- the company that owns the hotel must have paid-in capital of two million baht for each work permit it gets. Also, there should be four Thai employees for each work permit the company receives;
- to get a work permit you must bring some expertise to the table, ideally something in short supply in Thailand.
I run a development in which each house is owned by a separate person or couple, many of whom are outside of Thailand most of the time. Can I have a rental pool for these houses and run it as a hotel?
The idea of a rental pool is that some or all of the owners in a development or apartment building allow their units to be used as hotel suites while they are away. For this the owners are paid part of what the hotel guests pay, and a manager, who runs the hotel part of the operation, is paid the rest.
The rule in Thailand is that if the rental pool rents units out for 30 or more days at a time, this is fine. If you are running the rental pool as a hotel, in which guests can come and stay for as little as a single night, the rental pool will have to have a hotel licence. In this case, all of the rules about getting a hotel licence, including the environmental regulations we discussed last week, will be applicable.
If you apply for the environmental approvals after building the resort, government officers may condition approvals on changes in what has already been built. Thus you should strongly consider applying for environmental approvals before building.
Can I set up a condotel in Thailand?
A condotel is where the developer finances the construction by making each unit a condo and selling these to individual investors. The units are then run as a hotel with the profits divided between the developer, the hotel operator and the investors who own the condos.
The way the environmental licenses now work, however, is that applications for them must be different for condominiums and for hotels. Also, separate environmental licenses cannot be approved for both a condo and a hotel for the same building. Thus it's no longer possible without violating the law to develop a condominium that also has a hotel licence.
James Finch of Chavalit Finch and Partners (finch@chavalitfinchlaw.com) and Nilobon Tangprasit of
Siam City Law Offices Ltd
For more information visit
http://www.chavalitfinchlaw.com.
Clampdown on booze sales
Chechen President Ramzan Kadyrov signed a decree last week restricting alcohol sales in the predominantly Muslim Russian republic to two hours per day. "The fight against alcoholism is as pressing an issue as the fight against illegal armed groups," said Kadyrov, 32, a former rebel fighter.
The decree bans all sales of alcohol over 15 per cent proof except between 8 and 10am, Kadyrov said. Islamic leaders in the republic have been calling for a total alcohol ban.
The decree bans all sales of alcohol over 15 per cent proof except between 8 and 10am, Kadyrov said. Islamic leaders in the republic have been calling for a total alcohol ban.
Saturday, October 31, 2009
Child custody and support
If the parents divorce in Thailand, what happens to the children? Well, if it's a divorce by mutual consent, the parents can agree in writing about who has custody, and can agree to have joint custody.
If the parents don't agree, the judge in the divorce case can decide who gets custody.
A court can also, at the time of divorce or later, take away custody if a parent is incompetent, has abused his or her parental power or is guilty of what the judge considers gross misconduct.
Custody, both at the time of divorce and later, can be given to a third party such as a grandparent under these circumstances. And it's not just a parent that can request of a court that a non-parent have custody. The public prosecutor can, too.
The rights of custody, called "parental power" in the Thai Civil and Commercial Code, are as follows, and apply whether the parents are divorced or not. If they're not divorced, both parents have the right to exercise these powers:
To determine where the child lives;
to discipline the child reasonably;
to require the child to work, consistent with his or her abilities and status;
to demand the return of the child from someone else, including another parent without custody, who unlawfully detains the child.
Custody can be changed by the court at any time on application of a parent or the public prosecutor on the child's behalf. Even if a parent doesn't have custody, he or she is entitled to visitation of the child. In the case of divorce by mutual consent, the parents can agree on how visitation is to work. With divorce by court judgment, this will be covered in the court's decision.
A parent with custody may manage the property of a child, such as that inherited or received from the other parent as part of a divorce settlement. This management must be exercised with the care of someone with "ordinary prudence", however, or the parent may be liable to the child.
As to a minor child's property, there are a number of transactions that require court approval if a parent wants them, such as:
Deals, including sale and mortgaging of property;
loans;
guarantees.
The situation we see as lawyers all the time is that a foreign person has a Thai spouse and a child with a Thai citizenship. The foreign parent consults with us about putting land (which foreigners can't own in Thailand) in the child's name.
We respond that this is possible, at the discretion of the land office authorities, but if the parent will want to sell it while the child is a minor, a court order will be required. Practically speaking this will require expense and the consent of the Thai spouse.
When a child reaches majority, at the age of 20 in Thailand, the parent or parents managing the child's property must turn it over to him or her and give an accounting as to how it's been managed.
If a child has income, for example child support payments from another parent, the parent with custody must use it for the maintenance and education of the child. If the parent with custody, however, does not have other income sufficient to support him or herself, the child's income may be used for this purpose unless the source of the income was subject to a condition that the parent with custody not use it for his or her own support. You should understand, therefore, that if your spouse has custody of your child or children, that if you don't want to support your ex-spouse, too, you must condition the support on your ex-spouse not using the money to support him or herself.
What about child support? Whether the marriage is still in force or has been ended, parents have a duty to support and educate their minor children. Parents have a duty to support an adult child, too, if that child is sick and unable to earn a living. Parents can enforce these obligations against each other in court, as with custody issues, and the public prosecutor has a right to bring an action against a parent for child support in court, as well.
If the parents don't agree, the judge in the divorce case can decide who gets custody.
A court can also, at the time of divorce or later, take away custody if a parent is incompetent, has abused his or her parental power or is guilty of what the judge considers gross misconduct.
Custody, both at the time of divorce and later, can be given to a third party such as a grandparent under these circumstances. And it's not just a parent that can request of a court that a non-parent have custody. The public prosecutor can, too.
The rights of custody, called "parental power" in the Thai Civil and Commercial Code, are as follows, and apply whether the parents are divorced or not. If they're not divorced, both parents have the right to exercise these powers:
To determine where the child lives;
to discipline the child reasonably;
to require the child to work, consistent with his or her abilities and status;
to demand the return of the child from someone else, including another parent without custody, who unlawfully detains the child.
Custody can be changed by the court at any time on application of a parent or the public prosecutor on the child's behalf. Even if a parent doesn't have custody, he or she is entitled to visitation of the child. In the case of divorce by mutual consent, the parents can agree on how visitation is to work. With divorce by court judgment, this will be covered in the court's decision.
A parent with custody may manage the property of a child, such as that inherited or received from the other parent as part of a divorce settlement. This management must be exercised with the care of someone with "ordinary prudence", however, or the parent may be liable to the child.
As to a minor child's property, there are a number of transactions that require court approval if a parent wants them, such as:
Deals, including sale and mortgaging of property;
loans;
guarantees.
The situation we see as lawyers all the time is that a foreign person has a Thai spouse and a child with a Thai citizenship. The foreign parent consults with us about putting land (which foreigners can't own in Thailand) in the child's name.
We respond that this is possible, at the discretion of the land office authorities, but if the parent will want to sell it while the child is a minor, a court order will be required. Practically speaking this will require expense and the consent of the Thai spouse.
When a child reaches majority, at the age of 20 in Thailand, the parent or parents managing the child's property must turn it over to him or her and give an accounting as to how it's been managed.
If a child has income, for example child support payments from another parent, the parent with custody must use it for the maintenance and education of the child. If the parent with custody, however, does not have other income sufficient to support him or herself, the child's income may be used for this purpose unless the source of the income was subject to a condition that the parent with custody not use it for his or her own support. You should understand, therefore, that if your spouse has custody of your child or children, that if you don't want to support your ex-spouse, too, you must condition the support on your ex-spouse not using the money to support him or herself.
What about child support? Whether the marriage is still in force or has been ended, parents have a duty to support and educate their minor children. Parents have a duty to support an adult child, too, if that child is sick and unable to earn a living. Parents can enforce these obligations against each other in court, as with custody issues, and the public prosecutor has a right to bring an action against a parent for child support in court, as well.
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