Problems and Obstacles in Applying the Concept of Sustainable Development to the Civil and Commercial Code Concerning the Limited Companies that Fall under the Category of Family-owned Businesses

Abstract

            The purpose of this study was to find out whether the family-owned businesses established under the Civil and Commercial Code concerning limited companies can set business goals based on the principles of sustainable development, if they are supported by the limited company law in the Civil and Commercial Code of Thailand. Initially, this study clarified the concept of sustainable development in which business operations are responsible for the environment, society and corporate governance. At present, the concept of sustainable business practices based on ESG principles is a guideline or a goal of business operations that has been applied to the public companies, most of which are listed companies in Thailand. However, the concept of sustainable development can be adapted as the goal of every limited company, whether it is a limited company that is a family-owned business or a limited company that is not a family-owned business. In this article, the author focused on the study of the family-owned businesses established as limited companies. This study found that the Civil and Commercial Code of Thailand concerning limited companies, as well as foreign business law of Thailand, did not have provisions that support or pertain to the concept of sustainable business practices. Therefore, the author suggests amending the Section 1168 of the Civil and Commercial Code of Thailand to be in line with the concept of sustainable development and pertain to the principles of good corporate governance. This amendment will lead to the achievement of the goal of sustainable business operations of not only the business entities established as public limited companies, but also all limited companies, whether they are family-owned or non-family-owned businesses.