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Foreign stake in firms limited to 50%

24 February 2007

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Approved Changes

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Thailand

On 9 January 2007, the Thai Finance Minister announced that foreign investors will be prohibited from holding more than 50% of shares or voting rights in companies under changes approved by the Cabinet on the same day. The change affects companies which operate in industries which are considered important to national security, Thai culture or have an impact on natural resources. Foreign investors with more than a 50% shareholding are expected to reduce their take within a year, while foreign investors holding more than 50% of voting rights are given 2 years to comply with the new rules. The government's...