Thailand’s regulatory framework on alcohol sales has been further clarified, with the Royal Gazette issuing detailed guidance to help vendors assess customer intoxication. This follows the December introduction of regulations under Section 29 of the Alcohol Control Act, which prohibit the sale of alcohol to individuals who are already intoxicated. The updated guidance, effective from 28 March, places greater responsibility on businesses to actively assess customers before continuing service.

The announcement outlines a range of physical, verbal, and behavioral indicators that may signal intoxication. These include red or twitching eyes, unsteady movement, difficulty standing or walking, slurred or repetitive speech, and changes in behavior such as aggression, harassment, or inappropriate conduct. Signs of confusion or reduced awareness are also relevant. Where a customer displays an alcohol odor alongside one or more of these indicators, vendors are expected to exercise caution and consider refusing further service.

In addition to observational indicators, the guidance introduces practical assessment methods. These include a nose-touch test, a heel-to-toe walking test over 10 steps in a straight line with a controlled turn, and a single-leg balance test combined with counting for 30 seconds. Repeated inability to complete these tasks correctly—such as stumbling, stepping off of a line, using arms for balance, or putting a raised foot down prematurely—may indicate intoxication. Officials have emphasized that clear impairment in coordination, balance, or behavior, particularly where it could pose a risk to the individual or others, should be sufficient grounds to deny further alcohol service.

For businesses, the implications are significant. Vendors who continue to serve intoxicated customers who subsequently cause harm, injury, or damage may face legal penalties as well as potential compensation claims. Establishments should ensure that staff are appropriately trained, policies are clearly documented, and procedures are consistently applied. If you have any questions about how these regulations may impact your business, or require support in developing compliant policies and staff training, please contact our advisors at info@sunlegal.co.th

Insolvency Risks: Key Considerations for Directors

When a company in Thailand begins to face financial difficulty, directors are not legally required to initiate bankruptcy or reorganization proceedings. However, this does not mean they are free from responsibility. The law expects directors to respond appropriately as the company’s financial position deteriorates, and there can be consequences if they fail to do so. In particular, directors should closely monitor the company’s financial health and take timely action when losses become significant, even before formal insolvency proceedings are considered.

One often-overlooked rule is the requirement to call a shareholder meeting if the company loses half of its capital. Skipping this step isn’t just a technical oversight—it can lead to criminal penalties. Regulators have shown they are willing to pursue directors who ignore this obligation, especially in cases where companies quietly drift into distress without informing shareholders. It’s a simple but important reminder: transparency and timely communication matter.

Thailand doesn’t explicitly ban companies from continuing to operate while insolvent. In fact, many businesses do just that in an effort to recover. But there’s a fine line between trying to save a business and crossing into risky or dishonest behavior. Directors who take on new debts knowing the company can’t repay them, or who move assets in ways that disadvantage creditors, can be held personally liable. In serious cases, this can even lead to fraud charges—piercing the usual protection that separates personal and company liability.

The bottom line is that while Thai law gives directors some flexibility, it also demands good faith and sound judgment. Once formal proceedings begin, directors quickly lose control of the company, so early, informed decision-making is key. If your company is under financial pressure, now is the time to seek clear, practical advice. Contact us at info@sunlegal.co.th to review your obligations and determine the right course of action. Taking early, well-informed steps can help protect both your business and your position as a director.

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