The popularity of the populist Thai Rak Thai Party in Thai politics from 2001 to 2006 presented new challenges to the Democrat Party. The TRT championed populist policies with its focus on providing affordable and quality health care for all citizens, village-managed microcredit development funds, the government-sponsored One Tambon One Product program, and others. The populist policies earned the TRT enormous support from rural constituencies, unprecedented in Thailand's history.
Opposition to the TRT government rose in Bangkok after Thaksin's family announced their tax-free sale of their 49.6% stake in Shin Corp to Temasek for almost 73.3 billion Baht on January 23, 2006. The People's Alliance for Democracy began a series of anti-government protests. Several Democrat Party leaders also joined the PAD,[20] which accused Thaksin of disloyalty to the throne and asked King Bhumibol to appoint a replacement Prime Minister. Thaksin Shinawatra dissolved the House of Representatives on February 24, 2006 and called for an election. On March 24, 2006, Abhisit Vejjajiva publicly backed the People's Alliance for Democracy's call for a royally-appointed government. Bhumibol, in a speech on 26 April 2006, responded, "Asking for a Royally-appointed prime minister is undemocratic. It is, pardon me, a mess. It is irrational".[21]
Abhisit and his allies of opposition parties boycotted the April 2006 elections, claiming it "diverted public attention" from Thaksin's corruption charges and his sale of Shin Corp.[22] The boycott caused a constitutional crisis, prompting Thaksin to call another round of elections in October 2006, which the Democrats did not boycott. The Army seized power on 19 September and cancelled the upcoming election.