Abstract:
The limited company established by the local administrative organization is a juristic person established under the private law which holds a capital valued over 50 percent or controlled by the local administrative organization to operating a commercial enterprise. In academically, the local administrative organization limited company referred to the Local Public Enterprise (LPE). Therefore, The LPE dose note subject to either a local administrative organization and a state-owned enterprise. In addition, operating an economic activity by the local administrative organization limited companies shall be deemed as an entrepreneur and shall be regulated by the principles of free and equal trade competition under economic liberalism. Thailand has given an authority of its local administrative organization to establish or hold shares in the limited company. Presently, Krungthep Thanakom Company Limited and Khon Kaen Transit System Company Limited are the only two company reference the above-mentioned statement. These companies have become a referenced phototype for others local administrative organization. However, there are difficulty in establishing or holding shares for the economic purposes due to various legal issues such as criteria and conditions for establishing, legal status, objective framework, governance and indistinct guidelines for enforcement of the Trade Competition Act B.E. 2560. In addition, the legal issues obstruct the government to legally regulate the establishment or shareholding of the limited company and cause unfair trade competition between public and private enterprise. This Articles purpose is to suggest the enactment of laws to empower all 5 types of local administrative organizations in Thailand to establish or hold shares in one person company (OPC) and mixed limited company under the rules and supervision of the central government and regional levels. By prescribing its the legal status as a Local Public Enterprise along with statue guideline settlement, such as the enforcement of the Trade Competition Act B.E. 2560 (2017) for the local administrative organizations limited company on behalf of Entrepreneur. These would help the local administrative organization to select the appropriate executes. Simultaneously, it is also a preventive and directive measure to prohibit the unlawful limited company establishment by the local administrative organization. It can also protect the private economic rights and liberties in accordance with the principles of free and equal trade competition under economic liberalism and the Constitution of the Kingdom of Thailand.