Orajit Singkalvanich, director-general of the department, said yesterday that the measure would focus on companies in which foreigners hold less than a 50-per-cent stake.

The department has to implement the measure to clean up the problems of firms with nominee shareholders, she said.

The government has decided to implement more stringent measures in line with the ongoing investigation into allegations that Kularb Kaew was a nominee for Singapore-based Temasek Holdings during the latter's takeover of Shin Corp Plc in February.

She said the rule would allow the department to investigate any companies suspected of intending to carry out illegal transactions as a nominee firm.

The final results of the investigation into the Kularb Kaew case and whether it was in breach of the law would not be known for another 12 days.

Though Kularb Kaew's Thai shareholding is 51 per cent, its Thai shareholders have less than 10 per cent of the voting rights.

If it is proven a nominee company, it would be in violation of laws governing foreign businesses.

"The law is very complicated, so officials need time to consider the case," said Orajit, adding that the new measure would help reduce nominee-company problems.

Meanwhile, the Finance and Labour and Social Welfare ministries, along with the Business Development Department, will propose setting up a one-stop service to streamline the complicated process of company registrations to the Office of the Public sector Development Commission.

They hope to start the project later this month.

It will be run initially as a pilot project to serve popular demand for registrations within a day, Orajit said.

Petchanet Pratruangkrai

The Nation