How to Audit a Juristic Person When You Suspect Fraud or Non-Transparent Use of Funds

You have been paying common fees for years, but when you ask where the money goes, you only receive vague answers or are constantly avoided. That feeling is uncomfortable and completely understandable.

Questioning the transparency of a juristic person is not being aggressive or creating conflict, but a fundamental right of every co-owner under the law. Understanding how a juristic person is established and how its structure works will help you know who to check and where to start. This article will guide you on where to begin, what documents you can request, and what channels are actually available if you need to file a complaint or take further action.

Co-owners’ Rights to Audit a Juristic Person

Many people do not realize that they have the legal right to directly audit a juristic person, even though it is clearly supported by law.

For condominiums or apartment buildings, the Condominium Act B.E. 2522 grants unit owners the right to access financial information and meeting reports of the juristic person. For housing estates, the Land Allocation Act similarly protects members’ rights to audit the juristic person of a housing estate.

Warning Signs Before Starting an Audit

Before concluding that a juristic person is fraudulent, you should observe warning signs first. Some issues may arise from poor management rather than intentional fraud. However, if multiple signs appear together, it is time to take serious action.

Unclear financial statements that cannot be reviewed

The juristic person is responsible for preparing income-expense reports and annual financial statements for members. If the statements are vague, inconsistent, or requests for further details are repeatedly denied, this is a clear starting point for concern.

Unusually high expenses and non-transparent procurement

Overpriced repairs of common facilities, hiring contractors without price comparison, or repeatedly repairing the same issue without explanation may indicate conflicts of interest between the juristic person and contractors.

Meetings are not properly announced or intentionally missed

Annual general meetings are important channels for co-owners to audit and vote on key matters. If notifications are late, reports are not published, or meetings are held without member representation, these are red flags.

Complaints are ignored

Submitting complaints with no updates, unresolved issues, or selective resolutions without clear reasons are signs that should be documented.

Committee restricts access to information

If legally accessible information such as meeting reports, contracts, or financial statements is denied or delayed without valid reason, it should not be ignored.

How to Start Auditing and What Documents You Can Request

Once you observe concerning signs, the first step is to formally request documents, as documents are the foundation for everything that follows.

Documents You Can Request

As a co-owner, you have the right to request the following documents from the juristic person:

• Annual financial statements audited by a licensed auditor
• Committee meeting reports and annual general meeting reports
• Monthly or quarterly income-expense statements
• Procurement contracts and receipts related to common fund usage
• Annual budget plans

Although details may differ depending on applicable laws, the principle remains the same: members have the right to know how common funds are used.

How to Request Documents Formally

Requests should always be made in writing, whether through official letters, authorization letters, or emails with proof of delivery. Clearly specify the requested documents and set a reasonable timeline, such as within 15 days.

If Your Request Is Denied or Ignored

If your request is denied without clear reasons or ignored within the specified timeframe, record everything in writing and keep all supporting evidence for future complaints.

Collecting Evidence Before Filing a Complaint

Strong complaints must be supported by evidence, not just assumptions. Always remember that common fees belong to all co-owners. Collecting evidence is about protecting your rights.

Valid Evidence for Complaints

• Photos of deteriorated common property despite budget allocations
• Screenshots of chat or email showing unanswered complaints
• Receipts or contracts with unusually high prices
• Market price comparisons for similar work
• Records of denied document requests

Comparing contractor pricing with similar work in nearby areas can be strong supporting evidence.

Collect Names of Affected Residents

Group complaints carry more weight than individual ones. Gather signatures and document how each person is affected.

Where and How to File a Complaint

Once evidence is complete, proceed step by step, starting from the closest channel before escalating.

Start by Negotiating Directly

Submit your complaint formally to the juristic person with supporting evidence. This allows resolution without escalation.

Submit to the Committee

If negotiation fails, submit a formal complaint to the committee responsible for overseeing management.

This is a common step before escalating to external authorities.

File with Government Agencies

If internal actions fail, complaints can be filed with relevant government agencies depending on the issue.

• Department of Lands handles issues related to juristic persons of housing estates and condominiums
• Office of the Consumer Protection Board (OCPB) handles consumer rights issues
• Damrongtham Center handles general public complaints
• Police Station handles criminal cases such as embezzlement

Always bring supporting evidence and clarify procedures and timelines.

When to Consider Legal Action

Legal action should be the last option when all other channels fail and clear evidence of damage exists. Both civil and criminal actions are possible depending on the case.

Most complaints do not arise overnight but accumulate due to lack of transparency and limited access to information.

Transparency is not a special feature but a standard. When co-owners can access financial data and track fund usage in real time, most conflicts can be avoided.

Silverman is designed to help juristic persons operate transparently from the very beginning, from a real-time accounting system where every transaction can be audited to a complete usage history of staff activities that is fully recorded at all times. For co-owners who want to track project activities on their own, the resident application allows them to access information, pay bills, report maintenance issues, and contact the juristic person anytime and anywhere. Projects that use this kind of system rarely face questions about transparency because the answers are already available within the system. For more information, visit silverman.app or call 08-1442-6888