After spending over 30 years in the legal profession in England, I was employed in 2005 by a law firm on Kho Samui.
My Job entailed explaining to English speaking clients the procedure of purchasing land in Thailand by way of setting up a Thai majority shareholder company which was the accepted practice at the time.
The nominee shareholders were all employees of the law firm and the foreigner held 49% shares in the company and the Thais 51%
The foreigner controlled the company by virtue of the fact that their shares were preferential shares with a voting power of 10 votes per share and and the Thai held shares were ordinary shares with a voting power of one per share.
This was the accepted practice for numerous years and all foreigners, including myself as an employee of the law firm, had no reason to believe that it was illegal.
The momentous event that caused this practice to become scrutinised by the Thai authorities was Thakin’s involvement in a huge telecommunications company in which nominee shareholders had been used and millions of baht of tax had been avoided.
As we know that eventually led to Thaksin’s exile but it over night stopped the accepted practice of foreigners using the law firm’s employees as shareholders and the clients I was dealing with were told that they had to provide their own shareholders which needless to say led to immense problems.
The point I am making here is that the French lady who is the subject of this article was probably unaware that her companies had been set up illegally and it is the unsuspecting maid that will be the loser.
I am interested to know the name of the law firm involved here as it would not surprise me if it is the one I was employed by.