May a Private Limited Company issue Common and Preferred Shares?
Yes a Thai private limited company may issue common and preference shares. Privileges granted by preference shares can be in relation to voting rights, dividends, or privilege of liquidation. The Thai and Civil Commercial Code do not contains any restriction as to the attribution of preference shares to foreign investors. As well, the Foreign Business Act does not yet include voting rights in its definition of foreign owned company. Therefore it is still possible to date to incorporate a Thai company that would have articles of associations that attribute voting rights preference shares to the group of foreign shareholders. For example the foreign shareholder would own 49% of the shares with 75% of the voting rights.
