Thread: Director's Fees

A question I'd like to ask and I'm sure some guys on here have to use Thai directors for your company and if so do you actually pay fee's for the use of the Thai as a director.

What would be a reasonable fee per year or monthly would you expect to pay?

This is more about a trading company not a company owning land with a house like most farang do

Would shares in the company be more beneficial?

it depends on the size of the company and the role of the directors

are we talking "nominees" or real directors with a real "role" of corporate governance ?

nominees directors usually get paid a flat "bribe" of about 300 USD per month, but they do fuck all, it's a just name lease

or are you talking "nominees" shareholders for a Thai company ?

two different things,

Could not see why anyone would accept the liabilities of being a Director without some form of remuneration or stock option albeit a beer in a bar or a corporate.

From what I have been led to believe, Thailand SX does not require the disclosure of directors fees, stock options and the likes in public forums

The following is an example:............. http://investing.businessweek.com/re...?ticker=SCC:TB
Might be better to have a word with an Expat n Expat banker or broker???

for publicly listed companies, Directors fees and Management compensation is usually disclosed in the financial IR brochures

some are quite high, some are not that high

again, it's not clear what's the intention of the OP is for asking a director fee or taking such a position.

if he wants income, shares might be more beneficial. If he wants to "supervise" management, then being a director will achieve that.

Thanks guys firstly, but I am talking about my wife so she get a fair fee for being a nominee many farang need to use her name to buy land and house as you all well know, I understand that bit.

As she builds her business up down here she is getting more and more clients, good for her.

At the moment she has a client who will be opening a International school so already she and her B in L are doing all the legal work.

The question is he wants her to become a director of the school, but as already said no directors are getting paid so I ask him how can you expect anyone to become a director and not get any fee's?

I think he must have thought about what he said and he needs her more then she needs him, he now offers her 3% of the shares, so would she better of?

Thanks for the advise

Originally Posted by FarangRed

The question is he wants her to become a director of the school, but as already said no directors are getting paid so I ask him how can you expect anyone to become a director and not get any fee's?

on a school board, it's possible. In certain charity board, directors don't get paid, it really depends on the situation and what is asked. Officially directors have a certain role, that is to "supervise" management, most of the time it's just a silly reward to "bribe" someone or please someone.

Between a shareholder and a director, it's really 2 different things. She can be both of course. And she can also be part of management as Executive Director.

3% shares ? how much is total capital ? if it's the minimum (2m THB), it's like giving peanuts

I assume the total capital will be based on how much it has cost to build? lets say 15 million.

Originally Posted by FarangRed

assume the total capital will be based on how much it has cost to build?

not necessarily, it will be based on "registered" capital, not necessarily the total equity value of the company. If debt is involved, then net equity could be negative.

keep in mind that equity is like a loss tranche in a CDO, the purpose is to absorb losses and initial capital investment that will need to be recoup

she might be better off getting a management position or a director position for a small fee, say 10,000 THB a month or less.