What Is a Related-Party Transaction? Where to Find It in a Thai 56-1 and Which Ones to Read Closely
A related-party transaction is a deal a company does with an insider — a director, a major shareholder, a subsidiary, an associate or an entity the same people control. Most are normal and legal. Where they are disclosed in a Thai Form 56-1 One Report, and the outbound items that deserve the closest reading.
A related-party transaction is a deal a company does with an insider — a director, a major shareholder, a subsidiary, an associate, or an entity the same group of people controls.
Most related-party transactions are normal and completely legal, and disclosing one is an obligation, not an admission. What matters is which way the money flows.
Where it is in the book
| Where | What you find | Thai search term |
|---|---|---|
| 56-1 One Report, Item 9 (sub-item 9.2) | Internal control and related-party transactions | รายการระหว่างกัน |
| Table in Item 9 | Who the insiders are | บุคคลที่อาจมีความขัดแย้ง |
| Notes to the financial statements | Figures and prior-year balances | รายการธุรกิจกับกิจการที่เกี่ยวข้องกัน |
In the institutional reading order for a 56-1, Item 9.2 takes about five minutes: who, among people connected to the major shareholders, the money is flowing to (full order).
The ones to read closely: money going out
- Loans to directors or related parties — money out of the company. This is the line to read. Thai terms: เงินให้กู้ยืม · เงินทดรองจ่าย · เงินให้กู้ยืมแก่กิจการที่เกี่ยวข้องกัน.
- Related-party receivables that never come down — the company books revenue on a sale to a related party, reported profit improves on the spot, and the cash never arrives.
For a loan to a related party, ask three things:
- Is it secured?
- What is the rate, against what the company itself borrows at?
- What was last year's balance? A balance that never comes down means nobody intends to repay.
For scale: across 910 companies with documents in our archive for FY2021–FY2025 (index built 14 August 2026, counted 15 August 2026), 906 searchable related-party items from 202 companies — mostly routine — of which 216 outbound items (loans, advances or receivables to insiders) came from 71 companies, about 7.8%.
More in Earnings Can Be Dressed Up. The Cash Has to Land Somewhere.
Frequently asked
What counts as a related-party transaction?+
A deal the company does with an insider: a director, a major shareholder, a subsidiary, an associate, or an entity the same group of people controls. Most are normal and legal, and disclosing one is an obligation, not an admission.
Where are related-party transactions disclosed in a Thai One Report?+
In Item 9, internal control and related-party transactions (sub-item 9.2), with the figures and prior-year balances in the notes to the financial statements.
Which related-party transactions should worry an investor?+
Outbound items: loans to directors or related parties, and related-party receivables that never come down.
How do I judge a loan a company made to a related party?+
Whether it is secured, what rate it carries against what the company itself borrows at, and last year's balance. A balance that never comes down means nobody intends to repay.
From the archive · in English
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