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ResourcesCorporate and Tax AdvisoryThailand Corporate LawDoes US-Thai Amity Treaty Certification Change Corporate Governance?

Does US-Thai Amity Treaty Certification Change Corporate Governance?

Transcript of the above video:

As the title of this video suggests, we are discussing the US-Thai Treaty of Amity. For those who are unaware, the US-Thai Treaty of Amity provides certain benefits to American citizens as well as American businesses looking to do business here in Thailand because under the terms of the Treaty, American businesses or American individuals will be granted national treatment under that document. This is notwithstanding the restrictions inherent to the Foreign Business Act here in Thailand which effectively requires those foreigners looking to do business in Thailand to do so under a 49/51 share structure. The Treaty of Amity allows for effectively 100% American ownership of Thai companies doing business in Thailand, so that's definitely a possibility. 

Now the question posed by this video is does Amity Treaty Certification impact Corporate Governance? The answer effectively is no as a practical matter. Now it may impact the complexion if you will of a Corporate Board because Amity Treaty provisions may prohibit certain nationalities from serving on that Board, most notably effectively only Americans and Thais can operate within that type of corporate structure. 

So the thing to take away from this video is yeah it may have an impact insofar as it may restrict the types of nationality that may be able to participate in corporate governance functions here in Thailand, but as a practical matter it does not actually change the infrastructure, or I should say the legal infrastructure, associated with a company here in the Kingdom of Thailand.