Legal Measures for the Regulation and Oversight of Cooperatives

Abstract

This article aims to study the development of cooperatives in Thailand, to examine the laws related to cooperatives in Thailand, to analyze issues concerning the regulation and supervision of cooperatives in Thailand, and to propose guidelines for improving the regulation and supervision of cooperatives in Thailand.

            The findings of the study reveal two key issues. First, there are problems related to the supervisory bodies responsible for cooperatives. These bodies include the Cooperative Promotion Department (CPD) and the Cooperative Auditing Department (CAD), both of which operate under the Ministry of Agriculture and Cooperatives (MOAC). As a result, the operations of these two agencies lack effectiveness in supervising and regulating cooperatives. Second, there are problems concerning regulatory measures. Both the supervision of the establishment and the operation of cooperatives remain problematic, leading to ineffective oversight and the occurrence of corruption within cooperatives.

            The researcher proposes the following recommendations. A separate regulatory body for cooperatives should be established, independent from the Cooperative Promotion Department (CPD) and the Cooperative Auditing Department (CAD), with the specific mandate to supervise and regulate cooperatives. This body could be modeled on the Office of Insurance Commission (OIC), which is responsible for regulating the insurance sector. The proposed organization may be named the “Office of the Cooperative Regulation and Promotion Commission (CRPC)”, and specific legislation on cooperative regulation should be enacted to ensure effective and efficient supervision.