Jail awaits erring alien traders in Thailand
Wednesday, April 11, 2007
VIOLATORS of Thailand's new foreign investment law could face up to five years in prison, under a revised version of the proposed amendments approved by the cabinet yesterday.
The changes, originally proposed in January, would limit foreigners to holding no more than 49 per cent of the shares or voting rights in Thai companies.
The original proposal would have punished violators with only a fine of up to 100,000 baht (US$2,870) but the revised version raised the fine five-fold and also threatens five years in prison, according to Commerce Minister Krirk-Krai Jirapaet.
Companies would also have three years rather than two to adjust to the new regime, he added.
"The cabinet agreed to raise the penalty for violations both in fines and imprisonment. Those who violate the law would face five years in prison and fine of five times the amount in the earlier draft," he added.
"We added the criminal penalty in order to promote good corporate governance in the business sector," Krirk-Krai said, adding the draft would be submitted to parliament before Friday.
"I personally believe that the amendment will not affect foreign investment in Thailand or investor confidence because direct investment usually focuses on the rate of return and the investment opportunity," he said. The latest draft still needs approval from the military-installed parliament before taking effect.
AFP
The changes, originally proposed in January, would limit foreigners to holding no more than 49 per cent of the shares or voting rights in Thai companies.
The original proposal would have punished violators with only a fine of up to 100,000 baht (US$2,870) but the revised version raised the fine five-fold and also threatens five years in prison, according to Commerce Minister Krirk-Krai Jirapaet.
Companies would also have three years rather than two to adjust to the new regime, he added.
"The cabinet agreed to raise the penalty for violations both in fines and imprisonment. Those who violate the law would face five years in prison and fine of five times the amount in the earlier draft," he added.
"We added the criminal penalty in order to promote good corporate governance in the business sector," Krirk-Krai said, adding the draft would be submitted to parliament before Friday.
"I personally believe that the amendment will not affect foreign investment in Thailand or investor confidence because direct investment usually focuses on the rate of return and the investment opportunity," he said. The latest draft still needs approval from the military-installed parliament before taking effect.
AFP
Business Besides Oil
