Legal Measures for the Establishment of a Limited Company by a Provincial Administrative Organization: A Case Study of the Establishment of Eastern Rubber Management Company Limited by Rayong Provincial Administrative Organization.

Abstract

This independent study aims to examine the legal principles related to the establishment of a limited company by a Provincial Administrative Organization, focusing on the case of the establishment of Eastern Rubber Management Co., Ltd. by the Rayong Provincial Administrative Organization. The study investigates which legal principles were applied by the Administrative Court of First Instance and the Supreme Administrative Court in interpreting the authority of the Rayong Provincial Administrative Organization to establish a limited company, leading to the Supreme Administrative Court’s reversal of the lower court’s judgment. It also compares the essential aspects of Administrative Court judgments concerning the scope of authority of Provincial Administrative Organizations in establishing limited companies and proposes appropriate legal measures for such establishment. This research adopts a qualitative approach, emphasizing documentary analysis of relevant laws, including the Provincial Administrative Organization Act B.E. 2540 (1997), the Civil and Commercial Code, and administrative law principles concerning the legality of administrative actions. It also includes an analysis of Administrative Court judgments related to the establishment of Eastern Rubber Management Co., Ltd. by the Rayong Provincial Administrative Organization, as well as in-depth interviews with local administrators, government officials, and academic experts in law or political science. The findings are as follows. First, the establishment of a limited company serves as a mechanism to support the mission of local administrative organizations in improving the quality of life of the people, promoting local economic development, and enhancing the efficiency of public service delivery, which must be carried out strictly in accordance with legal rules and conditions. Second, the judgments of the Administrative Court of First Instance and the Supreme Administrative Court reflect different approaches to legal interpretation. The lower court adopted a strict interpretation, allowing the exercise of authority only as explicitly provided by law, whereas the Supreme Administrative Court interpreted such authority by emphasizing legislative intent and public interest. Finally, the law governing the establishment of limited companies by Provincial Administrative Organizations should be amended to provide greater clarity in order to reduce inconsistencies in legal interpretation, which may affect the provision of public services beneficial to the public.