[12] Thai Rak Thai was registered on 15 July 1998, by telecommunications entrepreneur Thaksin Shinawatra and 22 other founding members, including Somkid Jatusripitak, Thanong Bidaya, Sudarat Keyuraphan, Purachai Piumsombun, Thammarak Isaragura na Ayuthaya, and Prommin Lertsuridej.

Thai Rak Thai's policies included a 30 baht per hospital visit scheme, an extended debt moratorium for farmers, one million baht microcredit development funds for all rural districts, and the One Tambon One Product project.

Thaksin Shinawatra was in New York City attending a meeting of the United Nations General Assembly.

[19][20][21] Several party executives including Chaturon Chaisang, Phumtham Wechayachai, Suranand Vejjajiva, Veera Musikapong, Party Deputy and Industry Minister Suriya Jungrungreangkit and former Social Development and Human Security Minister Watana Muangsook were reported to be in Thailand and free.

[23] Several former MPs believed the party would be dissolved by the junta, including former Khon Kaen MP Prajak Kaewklaharn.

Sonthaya Kunplome also was reported to have led 20 members of the Chonburi faction in resigning from the party.

Fear that the party would be dissolved by the junta and its members banned from politics fueled the defections.

The party's future was in doubt following the military coup that ousted Thaksin's government in September 2006.

Former Prime Minister Thaksin Shinawatra and 110 members of the party were barred from participating in politics for a five-year period, with only eight of 119 charged acquitted.