My Thai partners want to leave the company... what can I do?

[platofrank]

I am partner in a Thai company; I own 33%, just as an investment and no work permit yet... that was still in the planning

My Thai partners have something else in mind and they want to quit the company.

What can I do... ? Can I take the shares? But than I owe more than 49%....

Anyone who can give me useful tips?

Thanks Frank

[lostinisaan]

Post deleted. I'm afraid you're coned.

Edited May 5, 2016 by lostinisaan

[beano2274]

you cannot own more than 49%, a good idea would be to find some other partners, you need that work permit soonest as well or otherwise you will be breaking the law.

[DipStick]

Just a thought, and I am not being negative, but why do your Thai partners wish to "escape" is it because the profit margin is low, or do they see a bigger Income if you were ostracized" honestly I can never ever see the sensibilities of investing such a small amount when you Thai partners (?) put the pressure on you .

[tingtong]

for that matter I am pretty sure you can own majority of the votes, even if owning 49% of a company...preferred shares, if you wish.

however, that would only solve your problem to the extent of +16% ownership...and leave still 51% in the air.

unless you very much convinced that the business is great, I think the simple way is to take the loss and head for the door.

work permit or not, you have very little upside in the story.

hope this wasn't a very expensive lesson, but even so, it should serve you for the future well!

[Ham Sandwich]

What else does he have in mind? Signing a few documents a year is not worth it for him? Do you make a profit? Like enough profit where the thai partner can spend 15 minutes signing stuff?

[Scouse Twoccer]

If the Thai shareholders want to "quit the company" they have to dispose of their shares or they remain as shareholders, obviously. So they have to find someone else to take them, you can take up to 49% legally, after that new Thai shareholders have to take the balance.

[Scouse Twoccer]

you cannot own more than 49%, a good idea would be to find some other partners, you need that work permit soonest as well or otherwise you will be breaking the law.

Investing in a company does not require a work permit. Working in Thailand does for a foreigner, there is a big difference.

[Scouse Twoccer]

. I'm afraid you're coned.

Don't listen to this guy, you have not been coned [sic], or even conned.

[Srikcir]

for that matter I am pretty sure you can own majority of the votes, even if owning 49% of a company...preferred shares, if you wish.

however, that would only solve your problem to the extent of +16% ownership...and leave still 51% in the air.

unless you very much convinced that the business is great, I think the simple way is to take the loss and head for the door.

work permit or not, you have very little upside in the story.

hope this wasn't a very expensive lesson, but even so, it should serve you for the future well!

Preferred stock is issued under the authority of the majority shareholder(s).

Not an option for a minority shareholder.

For the majority shareholders wanting to "leave" the company there is no advantage for them to issue preferred stock.

[beano2274]

you cannot own more than 49%, a good idea would be to find some other partners, you need that work permit soonest as well or otherwise you will be breaking the law.

Investing in a company does not require a work permit. Working in Thailand does for a foreigner, there is a big difference.

In the original post am sure the OP is expecting a Work permit!