Dear Koizumi san,
Having reviewed shareholder list and discussed with Khun Sujinda (head of land registrar at Klongluang) who Khun Natnarut of Navanakorn contacts with, Klongluang land office and Central Bangkok Land Office (Bureau of Land Registry Standard, Foreign division), please see advice as follows:
1. According to the shareholding structure of TST, there are a number of the same entities e.g. SBCS, SMSB, SMBC and BSL held in each layer of TST’s shareholding structure.
2. There is no rule issued by the Land Department provides that the ultimate owner of the entity (means AAT) must be Thais individual. However, the authority of the Central Bangkok Land Office had a view that if the ultimate owner are the entities and such entities are appeared in the other layer of the shareholding structure, the local land officer has his/her own decision to consider that it is a nominee structure and won’t accept the application.
3. The authority of Bangkok Land Office further clarified that even through the application has been passed to them to consider, they may consider the same way as Klongluang Land Office.
4. Having discussed with Khun Sujinda (authority of Klongluang Land Office), she said that if AAT increases the share portion held by TST to 65%-70% of the total issued shares of AAT (the best is increasing the share portion up to 70%and decreases the share portion held by Tokyo Seimitsu Co., Ltd. to not more than 30%), she will accept ATT’s application to purchase the land. No additional Thais individual is required as previously recommended to Khun Natnarut of Navanakorn. Khun Sujitnda also confirmed that the ultimate owner of shareholding structure is not required to be a Thais individual but for AAT case, it is because there are the fact as described in item 2 above.
5. Based on the recommendation from Khun Sujinda in item 4 above, we are of view that even through authority of Klongluang Land Office will accept the application and register the land transfer but please be aware that this does not kill the issue relating to the nominee structure if the government investigates AAT’ shareholding structure in the future. Please note that Thai government will random check the Thai company that having the foreign entity as part of the shareholding structure from time to time.
Dear Koizumi san,Having reviewed shareholder list and discussed with Khun Sujinda (head of land registrar at Klongluang) who Khun Natnarut of Navanakorn contacts with, Klongluang land office and Central Bangkok Land Office (Bureau of Land Registry Standard, Foreign division), please see advice as follows:1. According to the shareholding structure of TST, there are a number of the same entities e.g. SBCS, SMSB, SMBC and BSL held in each layer of TST’s shareholding structure.2. There is no rule issued by the Land Department provides that the ultimate owner of the entity (means AAT) must be Thais individual. However, the authority of the Central Bangkok Land Office had a view that if the ultimate owner are the entities and such entities are appeared in the other layer of the shareholding structure, the local land officer has his/her own decision to consider that it is a nominee structure and won’t accept the application. 3. The authority of Bangkok Land Office further clarified that even through the application has been passed to them to consider, they may consider the same way as Klongluang Land Office. 4. Having discussed with Khun Sujinda (authority of Klongluang Land Office), she said that if AAT increases the share portion held by TST to 65%-70% of the total issued shares of AAT (the best is increasing the share portion up to 70%and decreases the share portion held by Tokyo Seimitsu Co., Ltd. to not more than 30%), she will accept ATT’s application to purchase the land. No additional Thais individual is required as previously recommended to Khun Natnarut of Navanakorn. Khun Sujitnda also confirmed that the ultimate owner of shareholding structure is not required to be a Thais individual but for AAT case, it is because there are the fact as described in item 2 above.5. Based on the recommendation from Khun Sujinda in item 4 above, we are of view that even through authority of Klongluang Land Office will accept the application and register the land transfer but please be aware that this does not kill the issue relating to the nominee structure if the government investigates AAT’ shareholding structure in the future. Please note that Thai government will random check the Thai company that having the foreign entity as part of the shareholding structure from time to time.
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