Now the news of the day is that the MOC has launched a new probe into cases of foreign shareholdings in Thai companies that are above legal limit. Another witch hunt on the making?
Deputy Commerce Minister Siriwat Kajornprasart said on Thursday that he has assigned the Department of Business Development to work with the Department of Special Investigation in launching an in-depth probe into any irregular foreign shareholdings among Thai-based companies.
The probe has been initiated after the spread of rumors, which suggested that there are quite a number of local companies, particularly those in hotel &resort and agro-industry sectors, with more than 49 percent of shares held by foreign investors and entities.
Foreign shareholding that exceeds 49 percent is illegal in Thailand.
Mr. Siriwat said that the Business Development Department has been conducting such probes in various provinces, including Chanthaburi, Rayong, Trat, Phuket and Chonburi. And, so far, no irregularities have been confirmed.
The Deputy Commerce Minister, however, threatened those who have broken the laws to be prepared for maximum legal actions.
Now who would be dumb enough to structure a Thai limited company to handle a business reserved to Thai by setting up a company with foreign shareholders exceeding the 49% ratio? This may be why the probe did not so far discovered any irregularities.
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Originally posted 2012-06-22 17:46:10.