Anongwan Thepsuthin was selected on Sunday to lead Matchimathipataya party - the first woman in modern Thailand to lead a political party.
Mrs Anongwan was picked by the party's first general meeting, held at Sukhothai Technical College in the North.
Her election by party members was not a surprise, as she was clearly the favourite to succeed businessman Prachai Leophairatana, whose political and legal fortunes forced him to step down. She had represented the party at most political functions since Mr Prachai's problems began in December.
Mrs Anongwan is the wife of Mr Suthep, a former executive of Thaksin Shinawatra's Thai Rak Thai party, and under a five-year ban on direct participation in politics.
For this, Mrs Anongwan probably will be considered by many to be her husband's proxy.
Nevertheless, her achievement will be recorded in Thai politics, which never has been seen as female-friendly, and where women have never approached the top rungs.
Mrs Anongwan, who won a seat in parliament last Dec 23 in the general election, was named minister of natural resources and environment after Matchimathipataya (Neutral Democracy) party joined the ruling coalition formed by People Power party. Three other women also are in the 34-member cabinet, all of them wives of top Thai Rak Thai personalities.
Under her as deputy party leaders are Pol Maj Gen Intarat Yodbangtoey, Banyin Tungpakorn, Wiwat Nitthikarnjana and Veerasak Jinarat. Pornthiwa Nakasai was voted in as party new secretary-general.
Election commissioners from Sukhothai province attended the party meeting to ensure rules were followed on selecting executives.
The party is generally considered a regional faction, and was held in Sukhothai - an ancient Thai capital - to reflect the fact that its power emanates from the mid-northern region. It has just 10 seats in the current, 480-seat parliament.
Still, its policies are national in scope, and follow the populist line of the ousted Thaksin regime, of which Mr Suthep was a member. It calls for mass-transit mega-projects for Bangkok, building the Kra Canal across the southern Thai isthmus and oppose privatisation of all state enterprises.
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