Relaxation of the new FBA rules

[LordFlash 45]

BANGKOK: -- The Cabinet has relaxed the restrictions on foreigners' voting rights as well as extended the grace period in voting right adjustment.

 

At the meeting Tuesday, the Cabinet approved the proposed amendments to the Foreign Business Act: foreign voting rights in companies in Annex 3 can exceed 50 per cent while the grace period for voting rights in companies in Annexes 1 and 2 is extended from 2 years to 3 years.

 

Under the previous draft, any firm in which foreigners held 50 per cent or more of the shares, or 50 per cent or more of shareholders' voting rights, would be considered a foreign company, excluded from business activities reserved for Thais.

 

 

 

The Nation 2007-04-10

 

More news to follow, I'm sure......

[CheshireTom 1,377]

Hidden away was the bit about non-compliance. The thought of five years in jail should help concentrate the minds of those farangs who are looking to circumvent the rules.

 

 

 

Thailand threatens jail for foreign investment violations

04.10.07, 5:46 AM ET

 

BANGKOK (XFN-ASIA) - Violators of Thailand's new foreign investment law could face up to five years in prison, under a revised version of the proposed amendments approved by the cabinet, Commerce Minister Krirk-Krai Jirapaet said.

 

The changes, originally proposed in January, would limit foreigners to holding not more than 49 pct 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.

 

'The cabinet agreed to raise the penalty for violations both in fines and imprisonment. Those who violate the law would face five years in prison and fine of five times the amount in the earlier draft,' he said.

 

'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 before Friday.