51% Shareholder

[migs]

Hi all,

My girlfriend has been working for her farang employer for about 2 years. He now wants to buy out his Thai partner and has asked my gf to become the 51% Thai shareholder of the company. This would be on paper only as she doesn't thave the money to buy 51% of the company. In return he is offering her 5%. She wil have to sign all cheques and paperwork pertaining to the company.

My questions are - is it legal or advisable?

Thanks in advance.

[Mid]

run forrest run

[cclub75]

Hi all,

My girlfriend has been working for her farang employer for about 2 years. He now wants to buy out his Thai partner and has asked my gf to become the 51% Thai shareholder of the company. This would be on paper only as she doesn't thave the money to buy 51% of the company. In return he is offering her 5%. She wil have to sign all cheques and paperwork pertaining to the company.

My questions are - is it legal or advisable?

Thanks in advance.

It's totally illegal : it's called "nominee".

Thai authorities are currently reviewing the law (FBA), because of this issue (at least, it's what they say), and the new draft includes harder fines and prison times.

And it's not advisable because in your case it seems more than shareholding : if your GF has to sign "all the cheques" then it's more a managing/director position... Her responsability can be engaged.

So I agree with previous post : RUN. And fast.

However, and for your information, this structure of "nominee" was BROADLY used. Basically all the foreigns companies in Thailand, with some exceptions (BOI regime) even the biggest one (Shin bought by Temasek !) have used or a still using this trick. It's a fact.

[eagle1]

In addition to the above advises, your gf shall be risk especially 2 more issue:

1. As director, once there is any illegal business, your gf has to be responsible personally.

2. If the company's cheque is bounced, your gf shall be a defendant in the cirminal case as the signor of the cheque.

In fact, there are other legal issue to think about. If your have further queires, you can PM me.

Ekkapon Y