Foreign Business Act Stopped!

Reports presently suggest that the controversial Foreign Business Act has been halted.

Commerce Minister Krirkkrai Jirapaet asked the National Legislative Assembly to withdraw the bill in the last minutes of a heated NLA session after his ministry lost in its attempt to push through its version of the bill, considered more lenient than that of an NLA committee.

Nation FBA

Bangkok Post

Diplomats have said the new law, which already tightened restrictions on new foreign investment by defining ownership in terms of voting rights instead of shareholding, would trigger a challenge at the World Trade Organisation.

Despite this, analysts say the government's draft left scope for foreigners to control the companies in which they invested by having a majority presence on the board -- a loophole the last-minute addition was designed to close.

Previously, foreigners investing in many Thai sectors were limited only to holding 49 percent of equity, but could still exercise control of the company by having preferential voting rights.

Bangkok Post Breaking news 21.42

Regards

/edit PS why do I never see the typo in the header until after I press 'post' <sigh>

Edited August 8, 200718 yr by A_Traveller