Do the drafted amendments to the Foreign Business Act of 1999 have a provision about nominee shareholders?
The Foreign Business Act of 1999 prohibits Thai nationals from holding shares on behalf of foreigners in order to enable foreigners to conduct business in a restricted category. The amendments would require persons or business entities in violation of this provision to notify the Ministry of Commerce within 90 days. Persons or business entities in violation of the nominee shareholder provision would have one year to correct the shareholding of the company before being subject to punishment under law. The fine for companies utilizing nominee shareholders under the amended Foreign Business Act would be modified from 100,000 to 1,000,000 baht under the Foreign Business Act of 1999 to 500,000 to 5,000,000 baht under the amended Foreign Business Act.
