After the Council of State who wants to strengthen the Retail Act (read here), now it’s the turn of NLA (National Legislative Assembly) to put more pressure on the Foreign Business Act (see the special dossier about this important law, here).
Basically, some of NLA members would like to include a third way to define if a company is “foreign”.
Recap :
FBA 1 : majority of shares
FBA 2 : majority of shares and/or voting rights
FBA 2 with new NLA proposition : majority of shares, voting rights, MANAGEMENT CONTROL !
The important question is now : would it be a “or” criteria, or an “and” criteria ?
FBA details reviewed
INVESTMENT :The National Legislative Assembly is considering management control as one aspect to define any company as foreign under the Foreign Business Act (FBA), according to Skol Harnsuthivarin, a Commerce Ministry official.
The amended draft FBA this week passed first reading from the NLA and a new subcommittee was set up to rectify the draft, he said.
According to Mr Skol, some committee members want to include management control in addition to voting rights, which would be taken into account in the definition of a foreign company.
The draft is due to be tabled soon for its second and third readings in the NLA and is likely to be passed by the interim government, he believes.
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