Thailand to limit foreign ownership

  Legalbrief Today - Your Legal News Hub


Published in: Legalbrief Today

Date: Fri 13 April 2007

Category: Legislation

Issue No: 1804



Under a revised version of the proposed amendments approved by the
Cabinet, violators of Thailand’s new foreign investment law could face
up to five years in prison, Thai Commerce Minister Krirk-Krai Jirapet
said.

According to a report on the ABCMoney
site, the changes, originally proposed in January, would limit
foreigners to holding not more than 49% of the shares or voting rights
in Thai companies. The original proposal would have punished violators
with only a fine of up to 100 000 baht, but the revised version raised
the fine five-fold and also threatens to imprison violators for five
years, Krirk-Krai said. Companies would also have three years rather
than two to adjust to the new regime, he added. ‘We added the criminal
penalty in order to promote good corporate governance in the business
sector,’ Krirk-Krai said, adding the draft would be submitted to
Parliament soon. ‘I personally believe that the amendment will not
affect foreign investment in Thailand or investor confidence because
direct investment usually focuses on the rate of return and the
investment opportunity,’ he said. The latest draft still needs approval
from the military-installed Parliament before taking effect.

Full report on the ABCMoney site

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