How would the definition of a foreign company change under the amended Foreign Business Act?
The Foreign Business Act of 1999 defines a foreign company as a company where half or more of the shares are held by non-Thai persons or companies. The amended version of the Foreign Business Act would expand the definition of a foreign company to include companies where more than half of the voting rights are held by non-Thai persons or companies. This measure would affectively close the loophole used by many foreigners to own less than half of the shares of a company while still effectively controlling the company with majority voting rights.
