Thailand Legal Services Urge Clients To Be Aware Of Nominee Legalities

The use of Thai nominee companies to purchase land has been a much-debated topic in the press of late. The practice is so widespread that it is easy to assume that it is legal - however the reality is a lot more complex. End Quote

(1888PressRelease) June 18, 2010 - Bangkok, Thailand - Continuing reporting about the use of Thai nominee shareholders for land purchase has prompted BSA Law, a leading Thai law firm, to urge all companies currently using nominee to have their legal status reviewed.

The use of nominees in contravention of Thai law has been highlighted recently by two recent major cases, the first involving the purchase of rice farms by Middle Eastern investors and the second involving foreigners buying prime tourism land in Phuket. The debacle has continued into mid-2010.

There are several methods that nominee shareholder providers use to attempt to circumvent Thai law:
• Searching for legal loopholes
• Using Thai nominees that are dead or randomly picked from the phone book
• Using multiple Thai holding companies to invest in the new company or purchase the land

Apisakde Kongkangwanchoke, senior lawyer at BSA Law, wants to stress the importance of investors being on the right side of the Thai law regarding nominee usage. "Penalties for using nominees, when in actuality the company or land is owned by foreigners, almost invariably attract jail time or very hefty fines. They are not a slap-on-the-wrist matter", said Mr Kongkangwanchoke.

"We strongly recommend that clients have their legal standing assessed by a reputable Thai corporate legal service. Even if a director has been informed that they are doing nothing wrong in using Thai nominees, it is certainly possible they are committing a criminal offence", Mr Kongkangwanchoke continued.

About BSA Law:

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.

For more information please contact:

Jim Byrne
Business Advisor, BSA Law.
Email: jim ( @ ) bsalaw dot co dot th

For more details, please visit http://www.bsalaw.co.th .

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