True Accuses Total Access of Violating Thailandís Foreign Business Act
15 June 2011
On Tuesday, the Crime Suppression Division of the Thai police force received a complaint from True Move Co., the cellular phone arm of larger True Corp. PCL, stating that the shareholder structure of Total Access Communication PCL infringes on the Foreign Business Act of Thailand. True Move Co. and Total Access Communication PCL are rivals within the telecoms industry in Thailand.
True stated that due to the large percentage of foreign ownership, Total Access is considered a foreign entity. True claimed that the larger company has at least 71% foreign ownership through foreign nominees.
In Thailand, the law requires that only 49% of a business can be owned by foreigners.
True claims that although Total Access reported its foreign ownership right at 49%, a report sent to the Norway and Singapore Stock Exchanges from a telecoms group in Norway suggest that Total Access actually has about 66.50% foreign ownership.
Responding to the accusation, Total Access released a statement claiming that it has followed all Thai regulations correctly, and that it has reported its shareholder structure accurately.
Foreign Business Act Amendments Question and Answer
Foreign Business Act of 1999
Foreign Business Act