Previously, the ministry's short list included 16 companies. However, Cemex (Thailand) was dropped from the list last November. Three other companies - NNPL (Thailand), Kianwoo Marketing and Willis Sales and Contracting - have had internal conflicts over their shareholdings. As a result, the ministry has suspended its investigation into these companies.

Director-general Kanissorn Navanugraha yesterday said 12 companies had fallen under department scrutiny for breaching the act, following complaints received by the ministry.

If any of the companies are found to have been a nominee, they will be penalised under the existing Foreign Business Act. However, if the Act is amended, they will be punished under the new version.

The 16-company short list for investigation was proposed during the Thaksin Shinawatra government. The expanded investigation was the result of the ministry's probe into Kularb Kaew for being an alleged nominee for Singapore's Temasek Holdings.

Kanissorn said the ministry would try to conclude the investigation of those 12 companies soon. If any are found to have breached the Act, the department will then hand over the case to the police for further investigation before going to the Criminal Court.

Companies found using nominees will be required to undertake shareholder restructuring and reduce voting rights to less than 50 per cent within the ministry's deadline.

Under the amended law, companies listed in Annex 1 and Annex 2 must report their status to the ministry within one year and have two years to restructure their shareholding. If the voting rights exceed 50 per cent, they must report their status within 90 days and will have one year to adjust the voting right structure.

 Companies operating in Annex 3 must report their status within one year but do not need to restructure their shareholding or voting rights.

Companies under investigation are:

Group 1: Telecom firms - United Communication Industry, Bolero-Tak Wu Holdings, Telenor and Hutchison CAT Wireless Multimedia.

Group 2: Domestic airlines - Asia Aviation (Thai AirAsia) and Thai Sky Airline.

Group 3: Retail firms - Cen Car (Carrefour) and Ek-Chai Distribution System (Tesco Lotus).

 Group 4: Construction-material firms - includes Siam City Cement.

Group 5: Land-transport firms - DHL Logistics (Thailand).

Group 7: Other firms - Izumi Zenkosha (Thailand) (event organiser) and Burapa Lumpini Land (real estate).

 Meanwhile, the department has drawn up a plan to foster understanding among Thai and foreign enterprises regarding the amendments to the Foreign Business Act.

 Kanissorn said the department would organise a seminar to create better understanding among businesses.

"The programme is designed to provide more information to both Thai and foreign investors, to have a better understanding of the amendment and make it more comfortable to do business in the Kingdom," he said, adding that the seminar was open to all sectors, including manufacturing.

Petchanet Pratruangkrai

The Nation