Pattaya Daily News

15 June 2006 :: 14:06:35 pm 20604

Land Ownership Law regarding Alien holding shares with another Juristic Person.

The Ministry of Interior have laid down the principle, relating to the acquiring of land by a Juristic Person with alien holding shares for the officers to abide by, and in that the Ministry of Interior has received reports that there are foreigners working with Thais or engage Thais to register a company with the aim of buying and selling immovable property as a business venture.
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      A letter from the Ministry of Interior written and signed by Mr. Suraart Thongniramol, Deputy Permanent Director Ministry of Interior, published on 15 May 2006, regarding the acquisition of land in the name of a Juristic person with Alien holding shares has been forwarded to all Provincial Governors of every province in reference to the items that follows:-
1. Interior Ministry letter Mor. Tor. OS 1 sNor 2657 dated 5/8/2003
2. Land Dept. letter Mor.Tor. 0515Nor;13725 dated 4/5/2005
3. Land Dept. letter Mor. Tor. 051sNor12013 dated 26/4/2006

      The contents of the letter states that where the Ministry of Interior and the Land Department have laid down the principle, relating to the acquiring of land by a Juristic Person with alien holding shares for the officers to abide by, and in that the Ministry of Interior has received reports that there are foreigners working with Thais or engage Thais to register a company with the aim of buying and selling immovable property as a business venture. At the initial stage a house and land are purchased for residency or used as an office and later changed the aims to selling and subdividing for sale to foreigners which is illegal by law.

      The Ministry of Interior has considered this matter in detail, and in view of this they have revised, as a matter of protection, measures against the by passing of the law or buying land for the benefit of an alien as per Section 74 under the second paragraph of the Lands Act. It would be prudent to add that in the event that a Limited Company, a Limited Partnership or Registered Ordinary Partnership acquiring land, having the aim of carrying out business in immovable property (except for Public Company Limited, or a Juristic Person with legal permission to acquire land via a different Act i.e., as per Section 27 The Board of Investment Act B.E. 2520 or Section 44 of the Industrial Act BE. 2522 or Joint Immovable Assets Fund, Siam Commercial Bank, a bank established in accordance with the law enacted particularly for Investment Company, Securities Company, Life Insurance Company and Contingent Loss Insurance Company) will be in the firing line of investigation.

      If it appears that an alien holds shares or is a director or it is reasonable to believe that a Thai holds shares as representative of an alien the officers shall investigate the income of Thais holding shares, delving into the number of years in the current profession and monthly salary. The provision of necessary evidence is required. If a loan was taken for the purchase evidence of the loan is required. And if after due investigation and it can conceivably be believed that the request for the registration of rights and legal act is to by pass the law or to be believed that anyone who buys land for the benefit of alien in accordance with Section 74, paragraph 2 of the Lands Act the officers who undertook the investigation in detail shall forward the findings to the Land Department to await the order of the Minister.

      Under Section 74, in the process of registering the rights and legality undertaken by the officers in Section 71, officers have the power to interrogate the parties and call in related persons to give a statement or deliver related documentary evidence and the officers were to proceed as the circumstance dictates. If in the event that it is believed that the request for registration of rights and legality shall be in avoidance of the law or it may be believed that whichever person buys land for the benefits of an alien permission is to be sought from the Minister. The order of the Minister shall be final.

Reporter : PDN staff   Photo : Internet   Category : Legal

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