community enterprise promotion act, be 2548

Unofficial Translation* COMMUNITY ENTERPRISE PROMOTION ACT, B.E. 2548 (2005) _________ BHUMIBOL ADULYADEJ, REX. Given on the 8th Day of January B.E. 2548; Being the 60th Year of the Present Reign. His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that: Whereas it is expedient to have a law on community enterprise promotion; Be it, therefore, enacted by the King by and with the advice and consent of the National Assembly, as follows: Section 1. This Act is called the “Community Enterprise Promotion Act, B.E. 2548 (2005)”. Section 2. This Act shall come into force as from the day following the date of its publication in the Government Gazette. Section 3. In this Act: “community enterprise” means the community’s business relating to product manufacturing, service rendering or other businesses undertaken by a group of persons having a relationship with each other who share common ways of life and join together to conduct such business, whether it is a juristic person in any form or a non-juristic person, for income generation and self-reliance in the family, in the community and across the communities, in accordance with the criteria prescribed in the Notification by the Board; “community enterprise network” means a group of persons joining together to carry out any activity for the benefits of the operation of the community enterprises in its network; *

Translated by Ms. Arriya Phasee under contract for the Office of the Council of State of Thailand's Law for ASEAN project. – Tentative Version – subject to final authorisation by the Office of the Council of State. DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/ COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. THE OFFICE OF THE COUNCIL OF STATE SHALL ASSUME NO RESPONSIBILITY FOR ANY LIABILITIES ARISING FROM THE USE AND/OR REFERENCE OF THIS TEXT. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE.

2 “community enterprise business” means the business of community enterprises or community enterprise networks; “Board” means the Community Enterprise Promotion Board; “member” means a member of the Community Enterprise Promotion Board; “Provincial Community Enterprise Promotion Board” means the Bangkok Community Enterprise Promotion Board or a Provincial Community Enterprise Promotion Board, as the case may be; “Minister” means the Minister having charge and control over the execution of this Act. Section 4. The Prime Minister shall have charge and control over the execution of this Act. CHAPTER I COMMUNITY ENTERPRISE _________ Section 5. Any community enterprise interested in receiving the promotion under this Act shall file an application for registration to the Department of Agricultural Extension in accordance with the rules prescribed in the Notification by the Board. Section 6. After the Department of Agricultural Extension has received the application for registration and viewed that the community enterprise applying for the registration has the characteristics and objectives correctly in accordance with the criteria prescribed in the Notification by the Board, the Department of Agricultural Extension shall register and issue a certificate of registration to such community enterprise. Section 7. In the registration of community enterprise, at least the following particulars are required: (1) name and location of the community enterprise; (2) name and address of the person(s) authorised to act on behalf of the community enterprise; (3) names and addresses of members of the community enterprise; (4) business aimed to be undertaken by the community enterprise.

DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/ COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. THE OFFICE OF THE COUNCIL OF STATE SHALL ASSUME NO RESPONSIBILITY FOR ANY LIABILITIES ARISING FROM THE USE AND/OR REFERENCE OF THIS TEXT. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE.

3 Section 8. Within thirty days from the end of a calendar year, the community enterprise registered with the Department of Agricultural Extension intending to continue its operation shall inform the Department of Agricultural Extension in accordance with the procedures prescribed by the Board. If any community enterprise fails to inform its intention under paragraph one for two consecutive years, the Department of Agricultural Extension shall issue a warning letter to instruct such community enterprise to give a notice of intention within a specified period of time but shall not be less than fifteen days. If there is no notice given pursuant to such warning letter, the Department of Agricultural Extension shall withdraw such community enterprise from the register. Any community enterprise intending to terminate the operation shall inform the Department of Agricultural Extension within thirty days from the date of termination in accordance with the procedures prescribed by the Board. CHAPTER II COMMUNITY ENTERPRISE NETWORK _________ Section 9. The provisions of Chapter I shall apply, mutatis mutandis to the registration of incorporation, the notice of operation and the termination of operation of community enterprise networks. The community enterprise network which has been registered with the Department of Agricultural Extension shall have the right to apply for the promotion under this Act. Section 10. Administration and management of any community enterprise network shall be in accordance with its by-laws. The by-laws under paragraph one shall at least contain that the operation of the community enterprise network, whether it is a juristic person or a non- juristic person, shall be on a voluntary basis. Section 11. A community enterprise network may carry out the following activities: (1) providing advice and assistance in the internal affairs of the community enterprises in the network as follows: DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/ COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. THE OFFICE OF THE COUNCIL OF STATE SHALL ASSUME NO RESPONSIBILITY FOR ANY LIABILITIES ARISING FROM THE USE AND/OR REFERENCE OF THIS TEXT. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE.

4 (a) providing assistance in the incorporation or the study and research in relation to the utilisation of raw materials or resources or the application of local wisdom as suitable for the community enterprises and local conditions; (b) providing knowledge, training or assistance in relation to the improvement or development of production, service rendering, administration and management, fund raising, marketing and other matters beneficial to the operation of the community enterprises in the network; (c) providing advice or carrying out any act for the benefits of the operation of the community enterprises in the network at a local, regional and national level; (2) providing advice and assistance in the external affairs of the community enterprises in the network as follows: (a) being an intermediary to contact official agencies, State enterprises, public organisations or other State agencies including private sector organisations to receive assistance and promotion for the community enterprises in the network; (b) coordinating with other community enterprise networks or community enterprises to exchange knowledge or perform other activities that benefit or enhance the effectiveness of the operation of the community enterprises in the network; (3) acting as the center to promote unity and mutual assistance and academic collaboration to ensure strength and effectiveness of the operation of the community enterprises, whether in terms of product quality or products, administration and management and marketing development; (4) providing opinions to the Board on the policies or measures to promote the community enterprises provided by official agencies, State enterprises, public organisations or other State agencies. CHAPTER III COMMUNITY ENTERPRISE PROMOTION BOARD _________ Section 12. There shall be a Community Enterprise Promotion Board, consisting of: (1) the Prime Minister or the Deputy Prime Minister assigned by the Prime Minister as Chairperson;


5 (2) thirteen members from official agencies and related agencies, namely the Minister of Agriculture and Cooperatives, the Minister of Social Development and Human Security, the Minister of Commerce, the Minister of Interior, the Minister of Industry, the Director-General of Community Development Department, the Director-General of Department of Export Promotion, the Director-General of Department of Industrial Promotion, the Director-General of Revenue Department, the Director of National Science and Technology Development Agency, the Director of Community Organisations Development Institute, the Manager of Bank for Agriculture and Agricultural Co-operatives and the Director of Government Savings Bank; (3) ten members from the representatives of community enterprises appointed by the Council of Ministers from the persons selected by the operators of community enterprise businesses in accordance with the rules prescribed by the Minister; (4) three qualified members appointed by the Council of Ministers, one each to have the knowledge, expertise and experience in business administration, finance, and trading and industry. The Director-General of Department of Agricultural Extension shall be a member and secretary, and the Director-General of Department of Agricultural Extension shall appoint one representative of the Department of Agricultural Extension as an assistant secretary, and the Director-General of Community Development Department shall appoint one representative of the Community Development Department as another assistant secretary. Section 13. The Board shall have the power and duties as follows: (1) to provide opinions to the Council of Ministers on policies, measures and plans in relation to the development and promotion of community enterprise businesses; (2) to coordinate with the relevant agencies in government and private sectors to ensure unity and effectiveness of the promotion of community enterprise businesses; (3) to provide assistance, support or recommendation to community enterprises and community enterprise networks to improve the effectiveness of their operations; (4) to provide promotion and render assistance in the process for registering patents, trademarks or other intellectual properties or in any other matters for the benefits of community enterprise businesses;


6 (5) to support the study and research for the promotion and development of the operation of community enterprise businesses; (6) to perform any other acts as stipulated in this Act or other laws to be the power and duties of the Board, or as assigned by the Council of Ministers. Section 14. A member under section 12 (3) and (4) shall have qualifications and possess no prohibited characteristics as follows: (1) being of Thai nationality; (2) not being a government official holding a permanent position or receiving salary; (3) not being a staff member or employee of a State agency, a State enterprise or a local official agency; (4) not having been expelled, dismissed or discharged from an official service, a State agency or a State enterprise on the grounds of dishonest performance of duties or deemed as having committed dishonest acts and malfeasance in official service; (5) not being a person holding political position, a member of local assembly, a local administrator, a director, advisor or person holding any position responsible for the administration of a political party or an official of a political party, except for being a member of local assembly or a local administrator, which shall not be deemed as possessing the prohibited characteristics of a qualified member under section 12 (4); (6) not being bankrupt; (7) not being incompetent or quasi-incompetent; (8) not having been sentenced by a final judgement to imprisonment without suspension of the determination of punishment or suspension of the infliction of punishment, except for an offence committed through negligence or a petty offence. Section 15. A member under section 12 (3) and (4) shall hold office for a term of three years. If a member vacates office upon the expiration of the term, but a new member has not yet been appointed, such member shall provisionally perform his or her duties until a new member has been appointed. A member who vacates office upon the expiration of the term may be reappointed.


7 Section 16. In addition to vacating office on the expiration of term, a member under section 12 (3) and (4) vacates office upon: (1) death; (2) resignation; (3) being dismissed by the Council of Ministers due to negligence in the performance of duty, disgraceful behavior or incapability; (4) being sentenced by a final judgement to imprisonment without suspension of the determination of punishment or suspension of the infliction of punishment, except for an offence committed through negligence or a petty offence; (5) being disqualified or possessing any prohibited characteristics under section 14. Section 17. If a member under section 12 (3) and (4) vacates his or her office prior to the expiration of the term, the Council of Ministers shall appoint another person to replace his or her position and the appointed person shall be in office for the remaining term of office of the member whom he or she replaces, unless the remaining term of such vacated member is less than ninety days, in which case, the appointment of a replacement member may be omitted. Section 18. At a meeting of the Board, the presence of not less than onehalf of all members is required to constitute a quorum. The Chairperson shall preside over the meeting. If the Chairperson is not present at the meeting or is unable to perform the duties, the members present shall elect one among themselves to preside over the meeting. A decision of the meeting shall be made by a majority of votes. In casting a vote, each member shall have one vote. In the case of an equality of votes, the presiding member shall have an additional vote as the casting vote. Section 19. The Board may appoint a sub-committee to consider any matter or carry out any act on behalf of the Board or as assigned by the Board, and the provision of section 18 shall apply, mutatis mutandis. Section 20. There shall be a Provincial Community Enterprise Promotion Board for each province as follows:


8 (1) In Bangkok, there shall be a Bangkok Community Enterprise Promotion Board, consisting of the Governor of Bangkok or the Deputy Governor of Bangkok assigned by the Governor of Bangkok as Chairperson; the Permanent Secretary of Bangkok Metropolitan Administration, a representative of the Community Development Department, a representative of the Department of Export Promotion, a representative of the Department of Industrial Promotion, a representative of the Revenue Department, a representative of the National Science and Technology Development Agency, a representative of the Community Organisations Development Institute, a representative of the Bank for Agriculture and Agricultural Co-operatives, a representative of the Government Savings Bank, six representatives of community enterprises appointed by the Governor of Bangkok from the persons selected by the operators of community enterprise businesses in Bangkok in accordance with the rules prescribed by the Minister, and three qualified persons appointed by the Governor of Bangkok, one each to have the knowledge, expertise and experience in business administration, finance, and trading and industry in Bangkok as members; and the Chief of Provincial Agricultural Extension Office as a member and secretary; (2) In other provinces, there shall be a Provincial Community Enterprise Promotion Board, consisting of the Provincial Governor or the Vice Provincial Governor assigned by the Provincial Governor as Chairperson; the Deputy Provincial Governor, the Provincial Chief Medical Officer, the Chief of Community Development Provincial Office, the Chief of Provincial Office of Social Development and Human Security, the Chief of Office of the Provincial Commercial Affairs, the Chief of Provincial Industry Office, one representative of the Revenue Department whose office is located in such province, one representative of the Bank for Agriculture and Agricultural Co-operatives whose branch is located in such province, one representative of the Government Savings Bank whose branch is located in such province, six representatives of community enterprises appointed by the Provincial Governor from the persons selected by the operators of community enterprise businesses in such province in accordance with the rules prescribed by the Minister, and three qualified persons appointed by the Provincial Governor, one each to have the knowledge, expertise and experience in business administration, finance, and trading and industry in such province as members; and the Chief of Provincial Agricultural Extension Office as a member and secretary. Section 21. The Provincial Community Enterprise Promotion Board shall have the power and duties as follows:


9 (1) to provide opinions to the Board on policies, measures and plans in relation to the development and promotion of community enterprise businesses in Bangkok or in the province, as the case may be; (2) to coordinate with the relevant agencies in government and private sectors to ensure unity and effectiveness of the promotion of community enterprise businesses in Bangkok or in the province, as the case may be; (3) to provide promotion and render assistance in the process for registering patents, trademarks or other intellectual properties or in any other matters for the benefits of community enterprise businesses in Bangkok or in the province, as the case may be; (4) to consider or provide suggestions to the Board on the promotion of community enterprises in the province as stipulated in Chapter IV; (5) to perform any other acts as stipulated in this Act or other laws to be the power and duties of the Provincial Community Enterprise Promotion Board, or as assigned by the Board. The implementation under (2), (3) or (4) by the Provincial Community Enterprise Promotion Board shall not be in conflict or inconsistent with the policies, measures or plans in relation to the development and promotion of community enterprises as prescribed by the Board or as proposed to the Council of Ministers. Section 22. The provisions of section 14, section 15, section 16 and section 17 shall apply, mutatis mutandis to the members who are the representatives of community enterprises and qualified members in the Provincial Community Enterprise Promotion Board appointed by the Governor of Bangkok or the Provincial Governor, as the case may be, except for the vacating from office under section 16 (3), in which case, such members shall vacate office upon dismissal by the Governor of Bangkok or the Provincial Governor, as the case may be. The provisions of section 18 and section 19 shall apply, mutatis mutandis to the Provincial Community Enterprise Promotion Boards. Section 23. A member, a sub-committee member, a member under section 20 and a member under section 31 shall receive a meeting allowance, travel fees, per diem, lodging fees and other expenses for the execution of duties under this Act, as determined by the Council of Ministers.


10 Section 24. The Department of Agricultural Extension shall act as the Office of the Secretary of the Board in charge of general affairs, meetings, data studies and other activities related to the Board’s responsibilities. The Provincial Agricultural Extension Office shall have the duty and responsibility for the works under paragraph one that are related to the responsibilities of the Provincial Community Enterprise Promotion Board. CHAPTER IV COMMUNITY ENTERPRISE PROMOTION _________ Section 25. The community enterprise or community enterprise network which has been registered with the Department of Agricultural Extension may apply for the promotion or support from the Board in accordance with the procedures prescribed by the Board. Section 26. The Board shall establish measures to promote and support the development of business operations of the community enterprise businesses at a primary level on an integrated basis as well as to provide knowledge and support for the incorporation and collaboration and the study and research in relation to the utilisation of raw materials or resources or the application of local wisdom as suitable for the community enterprise businesses and local conditions or to provide knowledge in relation to the production process and business administration and management in all respects, including personnel administration, accounting, fund raising or marketing, in order to strengthen and create self-reliance for the community enterprise businesses at a primary level. Section 27. The Board shall establish measures to promote and support the development of the strengthened and self-reliant community enterprise businesses under section 26 on a continuous basis as well as to provide knowledge and support for business operations of the community enterprise businesses at a higher level in line with their readiness and needs, such as promoting and developing their products and modern designs that meet the market needs or their collaboration or providing assistance in the study and research for the development of technologies, whether in terms of quality, production, management and marketing, in order to build up readiness for the community enterprise businesses at a higher level. DISCLAIMER: THIS TEXT HAS BEEN PROVIDED FOR EDUCATIONAL/ COMPREHENSION PURPOSES AND CONTAINS NO LEGAL AUTHORITY. THE OFFICE OF THE COUNCIL OF STATE SHALL ASSUME NO RESPONSIBILITY FOR ANY LIABILITIES ARISING FROM THE USE AND/OR REFERENCE OF THIS TEXT. THE ORIGINAL THAI TEXT AS FORMALLY ADOPTED AND PUBLISHED SHALL IN ALL EVENTS REMAIN THE SOLE AUTHORITY HAVING LEGAL FORCE.

11 Section 28. In the case where community enterprises wish to gather together and establish a community enterprise network or any business organisation, the Board shall provide support for the incorporation, operation and marketing and shall promote the relationship and collaboration among community enterprise networks or other business sectors or industries for the expansion and stability of the community enterprise businesses. Section 29. The Board shall promote the operation of community enterprise businesses with respect to product quality maintenance and certification of origin, component parts, methods of production, quality or any other characteristics of the products or certification of conditions, quality, types or any other characteristics of the services, to ensure reliability of the products or services of the community enterprise businesses and safety to consumers or service users. In the promotion under paragraph one, the Board shall consider providing consultation or assistance to the community enterprise businesses for their registration of certification marks under the law on trademarks or providing any other consultation or assistance to protect the products or services of such community enterprise businesses as deemed appropriate. Section 30. In the promotion and support of community enterprise businesses, the Board shall consider performing the following activities: (1) to coordinate with the relevant agencies to provide promotion and support for the measures established by the Board under section 26 and section 27 and the promotion and support under section 28 and section 29; (2) to provide promotion and support, or to coordinate with the relevant agencies to provide support for the community enterprise businesses having trouble with the funds for operation; (3) to arrange training or knowledge dissemination that is beneficial and in line with the needs of the community enterprise businesses, such as training on management, accounting or duties and taxes or disseminating knowledge or technology of production or marketing; (4) to provide suggestions for the amendment of any law, rule or regulation that obstructs the operation or promotion of the community enterprise businesses;


12 (5) to perform any other acts as the Board deems to be beneficial to the promotion of the community enterprise businesses. Section 31. There shall be a Policy Coordinating Board for the Community Enterprise Development Fund, consisting of the Minister of Finance as Chairperson and other members of not more than twelve persons appointed by the Board, which shall have the following duties: (1) to coordinate in the operation of various funds to ensure effectiveness of the support provided to community enterprise businesses, reduction of unnecessary redundancy and mutual promotion and support; (2) to follow up and evaluate the operation of the funds having the objectives in relation to community enterprise businesses; (3) to provide suggestions to the relevant funds or the Board on the implementation guidelines or solutions for the capital funding needs for supporting community enterprise businesses; (4) to perform any other acts as assigned by the Board. The provisions of section 15, section 16 and section 17 shall apply, mutatis mutandis to the members of the Policy Coordinating Board for the Community Enterprise Development Fund appointed by the Board, except for the vacating from office under section 16 (3), in which case, such members shall vacate office upon dismissal by the Board. The provisions of section 18, section 19 and section 24 shall apply, mutatis mutandis to the Policy Coordinating Board for the Community Enterprise Development Fund. Section 32. In the case where any law, rule or regulation requires any community enterprise business to perform any act which is an inappropriate or undue burden, the Board may propose to the Council of Ministers to consider reducing such burden for the community enterprise business as deemed appropriate. Section 33. In the case where the Board has coordinated with official agencies, State enterprises, public organisations or other relevant State agencies to perform any activity under section 30 but it is not completed, the Board shall propose such matter to the Council of Ministers to consider taking any further actions.


13 TRANSITORY PROVISIONS _________ Section 34. At the initial term, the Prime Minister shall complete the appointment of the members under section 12 (3) and (4) and the members who are the representatives of community enterprises and qualified members in the Provincial Community Enterprise Promotion Boards under section 20 within ninety days from the effective date of this Act. Countersigned by: Police Lieutenant Colonel Thaksin Shinawatra Prime Minister
