Some party supporters wept openly at the verdict
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The leaders of Thailand's former governing party, Thai Rak Thai, have criticised a court ruling which orders the party's dissolution.
The head of the party, Chaturon Chaisaeng, said the decision was unfair but urged members to respect it.
His comments were echoed by a spokesman for the party's founder and ex-PM Thaksin Shinawatra, who has been banned from politics for five years.
The court said the party broke electoral laws during polls last year.
The elections were later annulled, and soon afterwards Mr Thaksin was ousted by a military coup.
'Too harsh'
Mr Chaturon said "the whole country is unlikely to accept" the ruling by the Constitutional Court.
"We weren't treated fairly. The ruling was made on the basis that those who seize power can decide what's right and wrong, even if that power comes from the barrel of a gun," he said.
The verdicts were announced in a heavily guarded courtroom in the capital, Bangkok, after hours of suspense.
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It's an unexpected ruling and we are disappointed by the verdict - it's too harsh on Thai Rak Thai
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The Democrat Party, the country's other main political party, had earlier been acquitted of similar charges.
The court ruled that the Democrats had not maligned Thai Rak Thai during the April 2006 election campaign, and thus would not be forced to disband.
But it was another story for Thai Rak Thai, which was found guilty of electoral malpractice.
The tribunal ruled that it should be disbanded, and more than 100 party officials, including Mr Thaksin, should be barred from politics.
A lawyer for the former prime minister told Reuters news agency he was "disappointed" by the verdict.
Mr Thaksin and his party still enjoy huge popularity in Thailand
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"It's too harsh on Thai Rak Thai," said Noppadon Pattama.
The BBC's Andrew Harding in Bangkok says the decision to punish the entire party is sure to provoke anger in Thailand.
Thai Rak Thai still retains widespread popularity, especially in rural areas, and supporters of the charismatic Mr Thaksin are likely to be upset that he has been barred from politics for so long.
The capital is so far reported to be relatively calm, although a protest against last year's coup is planned for later on Thursday, and thousands of soldiers are on alert in case of unrest.
Interim Prime Minister Gen Surayud Chulanont, who was installed after Mr Thaksin's overthrow, has said he would issue an emergency decree if the siutation turned violent.
His government has promised a new constitution and elections before the end of 2007.
Those Thai Rak Thai officials who have not been barred will no doubt try to form a new party to compete in the poll, our correspondent says.