Shares of a commercial bank held by the following persons or partnerships shall be
regarded as shares held by the person under the first paragraph:
(1) the spouse of the person under the first paragraph;
(2) a minor child of the person under the first paragraph;
(3) an ordinary partnership in which the person under the first paragraph or the person
under (1) or (2) is a partner;
(4) a limited partnership in which the person under the first paragraph of the person
under (1) or (2) is a partner with unlimited liability or in which one or more of such persons is a
partner or are partners with limited liability in an aggregate amount exceeding thirty per cent of
the total capital of such limited partnership;
(5) a limited company in which the person under the first paragraph or the person
under (1) or (2) or the partnership under (3) or (4) holds shares, in combination, in an aggregate
amount exceeding thirty per cent of the total amount of such limited company’s shares sold ; or
(6) a limited company in which the person under the first paragraph or the person
under (1) or (2) or the partnership under (3) or (4) or the limited company under (5) holds shared,
in combination, in an aggregate amount exceeding thirty per cent of the total amount of such
limited company’s shares sold.
Section 5 ter8. No commercial bank shall transfer its shares to any person if such
transfer will cause such person or any other person to hold shares in a percentage greater than that
prescribed under Section 5 bis.
Whenever an invitation to subscribe for shares is made, a commercial bank shall specify in such invitation the total amount of shares which may legally be held by a person in
accordance with Section 5 bis.
Section 5 quarter9. The ordinary shares and preference shares of a commercial bank
shall be of the kind with name certificates, having a par value of not more than one hundred Baht
per share and subject to no regulations of a commercial bank restricting transfer of shares, except
for purposes of compliance with Section 5 bis or Section 5 quinque or with the law on limited
public companies.
Section 5 quinque10. The amount of shares of a commercial bank held by
persons of Thai nationality shall not be less than three-fourths of the total amount of shares
sold and the number of its directors who are persons of Thai nationality shall not be less
than three-fourths of the total number of directors. However, the Minister with the advice
of the Bank of Thailand shall be, in the event where there is any necessity to rectify the condition
or operation of any bank, empowered to authorize shareholding or directorship
otherwise. Such relaxation may be prescribed with any condition.
Section 5 sex11. Where it appears that an acquisition of shares causes any person to
hold shares in a percentage greater than that prescribed in Section 5 bis, the holding of shares in
excess of the prescribed percentage may not be set up against the commercial bank concerned by
such person and such commercial bank shall not pay dividend or any other form of money as
bonus to such person or allow such person to vote at a meeting of shareholders on account of the
exceeding amount of shares.
Section 5 septem12. For the purposes of compliance with Section 5 bis, Section 5
quinque and Section 5 sex, a commercial bank shall examine its register of shareholders prior to each distribution of dividend or any other form of money as bonus and prior to a meeting of
shareholders, and inform the Bank of Thailand of the results of such examination pursuant to the
particulars and within the period of time prescribed by the Bank of Thailand . In the case where
any shareholder is found to hold shares in excess of the percentage prescribed in Section 5 bis, the
commercial bank concerned shall notify such person to take steps to dispose of such exceeding
amount of shares.
Section 5 octo13. The provisions of Section 5 bis, Section 5 ter, Section 5 quarter, Section 5 quinque, Section 5 sex and Section 5 septem shall not apply to any commercial bank
which is a branch of a foreign bank.
Section 614. A branch of a foreign bank can undertake the business of commercial
bank only after having obtained a license from the Minister. Such license may be granted with
conditions to be complied with.
The branch of a foreign bank licensed to carry on the business of commercial banking
shall maintain assets in Thailand in accordance with the criteria regarding the amounts, types,
procedures and conditions as prescribed by the Minister in the Government Gazette.
Assets required to be maintained in accordance with the second paragraph shall be
acquired with (1) the money brought in from the head office and/or any other branches outside
Thailand of such foreign bank, (2) various reserves, excluding reserves for diminution of the
values of assets and reserves for repayment of debts, or (3) net profits of the branch in each
accounting period which have been transferred to the account of the head office and which are not
required to be remitted abroad; provided that all accumulated losses incurred in the previous
accounting periods shall be firstly deducted.
In compliance with the provisions of this Act, the assets to be maintained in
accordance with the second paragraph shall be considered as capital funds.
Section 7. A commercial bank, other than a branch of a foreign bank authorized to
undertake the business of commercial banking, may establish a branch only with the authorization
of the Minister. An application for such authorization shall contain particulars as prescribed by
the Minister, 1/ and the authorization may be granted with or without conditions.
Section 7 bis15. In the case where any person intends to act on behalf of a foreign
bank by setting up a representative office in the Kingdom of Thailand, or any commercial bank,
other than a branch of a foreign bank, intends to establish a representative office, within or
outside the Kingdom of Thailand, there must be the prior authorization of the Bank of Thailand.
Such authorization may be granted with conditions to be complied with.
Section 7 ter16. A commercial bank authorized to establish its head office or branch
office at any location shall not change the location of such office except with the permission of
the Bank of Thailand. Such permission may be granted with conditions to be complied with.
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8 As amended by Section 4 of the Commercial Banking Act (No.2), B.E. 2522
9 As amended by Section 4 of the Commercial Banking Act (No.2), B.E. 2522
10 As amended by Section 3 of the Emergency Decree Amending the Commercial Banking Act , B.E. 2540
11 As amended by Section 4 of the Commercial Banking Act (No.2), B.E. 2522
12 As amended by Section 4 and Section 5 of the Commercial Banking Act (No.2), B.E. 2522 respectively
13 As amended by Section 4 and Section 5 of the Commercial Banking Act (No.2), B.E. 2522 respectively
14 As amended by Section 4 and Section 5 of the Commercial Banking Act (No.2), B.E. 2522 respectively
15 As amended by Section 6 and Section 7 of the Commercial Banking Act (No.2), B.E. 2522 respectively
16 As amended by Section 6 and Section 7 of the Commercial Banking Act (No.2), B.E. 2522 respectively |
