The Commerce Ministry said 56 companies in Phuket are suspected of breaching the Foreign Business Act (FBA) by having Thais acting as nominees so that foreigners can hold majority control, reports The Nation.
In total 153 companies were investigated, most with Russian interests, all connected with the food and beverage or financial industry industry.
The use of “nominee” shareholders in Thailand company registration is strictly prohibited by the Foreign Business Act 1999. While enforcement of the Thai nominee prohibitions of the Foreign Business Act has been infrequent up until now, this case clearly shows that times are changing and should come with a reminder that such use of nominee shareholders remains a criminal offense.
Read the full story here
Related Articles:
The Foreign Business Act and Other Foreign Business Restrictions
{ 1 comment… read it below or add one }
What will happen if those company proven in breach of business Thai law?