Bangkok – The Cabinet has given its approval to four draft laws to open up stock conversion to entice investment and business development.
Prime Minister’s Office Advisor Nutthaporn Jatusripitak made it known that this week’s Cabinet meeting gave its approval to a set of four draft laws that together allow limited companies to convert stocks, and stagger shares, to create an Employee Stock Ownership Plan and to create preferred stocks.
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Among changes in the law is an allowance for share buyers to use debt as payment in cases where shareholders make special provisions or when a company converts shares into capital.
The proposed new laws also allow preferred stocks to be converted into common stock and for companies to buy back and hold their own shares if they meet certain criteria. Companies will also be able to offer shares to employees or lenders without having to first propose the shares to existing holders.
Obstacles to issuing debentures have also been relaxed, mostly to assist Start Ups. At the same time, punitive action against companies, associations and foundations in terms of shareholdings have also been modified.
The draft laws are now being forwarded to the Council of State, which must ask the Stock Exchange of Thailand and Securities and Exchange Commission for their views before the National Legislative Assembly can deliberate on the laws.
