Section 20. No finance company shall:
(1) reduce or increase its capital without an authorization of the Minister, such authorization may be granted with any condition as the Minister may prescribe;

(2) purchase or hold immovable properties except:
(a) those for use as premises for the business of the finance company or as places of residence or welfare facility for its officers and employees as permitted by the Bank of Thailand;
(b) those acquired by a finance company as a result of a debt settlement, a guarantee in respect of credit granted or the purchase of an immovable property mortgaged to the finance company at auction conducted pursuant to an order of a court or an official receiver, but such immovable properties shall be disposed of within three years from
the date of passing of ownership of such immovable properties to the finance company or within a longer period of times as permitted by the Bank of Thailand; or
(c) those held by a finance company which undertakes the business of finance for housing for the purpose of carrying on its business in accordance with the rules, procedures and conditions prescribed by the Bank of Thailand with the approval of the Minister.

The permission under (a) or (b) may be granted with any condition as the Bank of Thailand may prescribe;
(3) accept its own shares as security or accept a finance company’s shares from any other finance company as security;

(4) purchase or hold shares of any limited company in an amount exceeding ten per cent of the total amount of such company’s shares sold unless approved by the Bank of Thailand.
Such approval may be granted with any condition as the Bank of Thailand may prescribe;

(5) purchase or hold shares in any other finance company except:
(a) those acquired as a result of a debt settlement or a guarantee in respect of a loan granted but such shares shall be disposed of within six months from the date of acquisition;
(b) those acquired as a result of the carrying on of other business activities as authorized by the Minister; or
(c) those acquired as permitted by the Minister with the recommendation of the Bank of Thailand. Such permission may be granted with any condition.

(6) engage in any business other than the type of finance business authorized, except with authorization of the Minister, such authorization may be granted, with any condition.

A finance company which has been granted a license to engage in to finance business for development shall also be allowed to engage in the following activities:
(a) acting as a broker or an agent in the procuring of loans or investment funds, for industrial, agricultural or commercial undertaking, or arranging and managing of matters concerning the lending of money to or the investing of money in the said undertakings;
(b) providing the service of preparing or analyzing investment projects;
(c) acting as a consultant on the matters of finance or operations of industrial, agricultural or commercial undertakings;
(d) acting as a consultant on the purchase of business or the merger of businesses;

A finance company which has been granted a license to engage in the finance business for commerce shall also be allowed to engage in the business of giving guarantees in accordance with the rules, procedures and conditions prescribed by the Bank of Thailand;

(7) lend money to any of its directors.
The following actions shall also be considered as lending money to such a director:
(a) lending money to the spouse or a minor child of the director;
(b) lending money to an ordinary partnership in which the director or person under (a) s a partner;
(c) lending money to a limited partnership in which the director or person under (a) 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;
(d) lending money to a limited company in which the director or a person under (a) or partnership under (b) or (c) holds shares, separately or in combination, in an aggregate amount exceeding thirty per cent of the total amount of such limited company’s shares sold;
(e) lending money to a limited company in which the director or person under (a) or partnership under (b) or (c) limited company under (d) holds shares, separately or in combination, in an aggregate amount exceeding thirty per cent of the total amount of such limited company’s shares sold;
(f) acceptance giving aval or intervention of honor of any bills which the director, the person under or (a) partnership under (b) or (c) or limited company under (d) or (e) is a drawer, a maker of bill or an endorser;
(g) guarantee any debt of the director or person under (a) or partnership under (b) or (c) or limited company under (d) or (e);

(8) change the location of its head office or branch office without permission of the Bank of Thailand, Such permission may be granted with any condition;

(9) pay money or give any other property to any of its directors, officers or employees as commission or remuneration for or by reason of any transaction or business of the finance company other than gratuities, salaries, bonuses and other allowance which may normally be paid to them;

(10) sell or give any immovable property or movable property with an aggregate value exceeding the amount prescribed by the Bank of Thailand to any of its director, or purchase any property from any of its directors including the person under (a), partnership under (b) or (c) or limited company under (d) or (e) of the second paragraph of (7), except with the approval of the Bank of Thailand;

(11) advertise its business unless such advertisement is carried out in accordance with the rules, procedures and conditions prescribed by the Notification of the Bank of Thailand;

(12) enter into a contract entrusting or allow any other person who is not a director, a manager or an officer of the finance company, with the absolute or part of power of management of the finance company unless prior approval was granted by the Bank of Thailand;

(13) do any act which may cause damage to the economy or the public interest constitute taking unfair advantage of its customers or the persons concerned, or create obstacles to the development of or orderly completion in the financial institution system, or result in unfair economic or monopolistic barriers as prescribed by the Bank of Thailand with the approval of the Cabinet and published in the Government Gazette.

Section 21. A finance company shall notify the Bank of Thailand in writing within fifteen days from the date of the occurrence of the fooling events:
(1) the amendment of its Memorandum of Association or Articles of Association;
(2) the change of any of its directors, managers, or officers or persons with power to manage the affairs of the company.

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