Farang rights in thai company

[noikrit]

How much control does a foreinger have in his thai company? This question is in regards to LAND OWNERSHIP in a thai company name. Can he overide the 51% thai owners / voters at anytime ? Can the 51% Thai owners take control and sell the land without the Farangs consent ? Regards

[Sunbelt Asia]

How much authority the Thai shareholders have would depend on what kind of shares they hold and what kind the foreigner holds at the time the company is set up. There are two tiers of shares; Preferred shares and Ordinary shares. Ordinary shares carry 1 vote for every share and Preferred shares carry 1 vote for every 10 shares.

If the foreign partner formed the company with the Thai partners holding preferred shares then his or her voting power would be stronger.

It is important to note that the Thai government is cracking down on companies that have been formed for the sole purpose of purchasing land, if the business is an actively trading company with Thai shareholders who have invested money in the company and not nominee shareholders then there should be no problem with the government.

[sunbeltlegal][/sunbeltlegal]