"nominee" Crackdown On The Horizon?

[Marvo]

So... soon (July 1st) we can run a company with only 3 shareholders/sponsors - a subtle move from the 7 previously deemed necessary - but why?

Do we reckon this is the first step the government are taking down the road in an attempt to resolve the big "nominee" shareholder issue Thailand has? It's always beaten me how ANY small enterprise could be genuinely set up with seven REAL investors.

Previously, if the authorities had set a precident by nailing a company for having nominee shareholders then it would need a humongously large bag of nails to finish the job across the country. Now the problem will be shrunk considerabley. A large percentage of "legit" companies will now be legal, leaving fewer remaining "dodgy" outfits to go after, allowing the authorities to pick and choose who they want to string up without being accused of ignoring wider flouting of the law.

Just my idle rambling......

[cclub75]

It could be the perfect thai way to solve the problem indeed.

-nominees are everywhere

-reduce the required number of shareholders

-therefore problem solved !

However, more seriously, I don't think it will solve the issue of... nominees for us (in the sense of the Foreign Business Act or for the land ownership issue).

My point : you're thai, you set up a company and you give 1 share to your sister in order to fullfill the 7 sharesholders rule... I m' not sure that we can say that she's your "nominee".

However, if you're farang, you set up a company and you give 51 % of the shares to your thai wife... then she's likely to be a "nominee", regarding the FBA, because she helps you to bypass FBA regulations. Obviously.

So to summarize : I do not agree with your last point "A large percentage of "legit" companies will now be legal"

Before, 6 shareholders at 51 % were nominees... After it will be... 2 shareholders at 51 %. No more legit than before.

So... soon (July 1st) we can run a company with only 3 shareholders/sponsors - a subtle move from the 7 previously deemed necessary - but why?

Do we reckon this is the first step the government are taking down the road in an attempt to resolve the big "nominee" shareholder issue Thailand has? It's always beaten me how ANY small enterprise could be genuinely set up with seven REAL investors.

Previously, if the authorities had set a precident by nailing a company for having nominee shareholders then it would need a humongously large bag of nails to finish the job across the country. Now the problem will be shrunk considerabley. A large percentage of "legit" companies will now be legal, leaving fewer remaining "dodgy" outfits to go after, allowing the authorities to pick and choose who they want to string up without being accused of ignoring wider flouting of the law.

Edited March 29, 2008 by cclub75

[Khun Jean]

For me it is great news.

I know only a few Thai people that i would be willing to start a copmany with. And they have their own money.

finding 6 was for me impossible. 2 is just fine.

I can see this helping Thais and foreigners start businesses more easy.

Was this 'law' thought up by this government or the previous one. It is a smart move and it seems beyond the capabilities of the current government.

[ray08]

For me it is great news.

I know only a few Thai people that i would be willing to start a copmany with. And they have their own money.

finding 6 was for me impossible. 2 is just fine.

I can see this helping Thais and foreigners start businesses more easy.

Was this 'law' thought up by this government or the previous one. It is a smart move and it seems beyond the capabilities of the current government.

A step in the right direction ,but look at say Hongkong you can have a company without any local shareholders/ partners,

it would be great to have that freedom here, i mean why have a partner or other shareholders if you really have no need for

them ?

[steelepulse]

For me it is great news.

I know only a few Thai people that i would be willing to start a copmany with. And they have their own money.

finding 6 was for me impossible. 2 is just fine.

I can see this helping Thais and foreigners start businesses more easy.

Was this 'law' thought up by this government or the previous one. It is a smart move and it seems beyond the capabilities of the current government.

A step in the right direction ,but look at say Hongkong you can have a company without any local shareholders/ partners,

it would be great to have that freedom here, i mean why have a partner or other shareholders if you really have no need for

them ?

I was thinking this would make it easier on the gov't to track down the 51% shareholders as they will only have to look into two people instead of six.  Is the glass half full or half empty