Bangkok, OIC reduces insurance business procedures. 'Reduce registered capital' hoping to increase flexibility business rehabilitation Hurry to help before submitting to the board. Acknowledged. Mr. Somprasoke Piyatanon, Assistant Secretary-General Business and Investment Supervision Division The Office of the Insurance Commission (OIC) revealed that the Office of the Insurance Commission has issued an announcement from the OIC Committee regarding the criteria for approving capital reductions of life/casualty insurance companies, B.E. 2024 has come into effect since January 30, 2024 to reduce the process. Reduction of capital of insurance companies This gives the company flexibility in reducing capital and carrying out related operations more quickly. The OIC also imposes a prohibition on companies from reducing capital. without permission in writing from the registrar with the approval of the OIC board. Therefore, in the past, insurance companies applied for approval to reduce capital. The OIC office has c onsidered and will propose to the OIC board for consideration and approval before issuing a letter granting permission to the company. And although the OIC committee meets on a monthly basis But in terms of doing business sometimes need speed For example, In case the company wants to increase capital To strengthen the financial position But the company still has registered shares that cannot be sold or have not yet been issued. As a result, the company cannot issue new shares to offer to new investors until the company reduces its capital. By eliminating registered shares that cannot be sold or that have not yet been put out for sale first. The OIC Office has studied and found guidelines. To be effective, the OIC has therefore issued this announcement to cover capital reductions in two cases: the first case is a capital reduction by writing off registered shares that cannot be sold or that have not yet been sold. The second case is a capital reduction to reduce losses. Accumulated by reducing the value of sh ares or reducing the number of shares, in both cases, must not cause the shareholders' equity according to the financial statements to change. and does not violate the OIC law. The OIC Office will be able to consider and issue a letter. Permit the company without having to present it to the OIC Board meeting for consideration and approval first, but must report the results of the approval consideration to the OIC Board. This announcement has come into effect. already on January 30, 2024. Interested parties can read the full announcement at www.oic.or.th . Source: Thai News Agency