The Commerce Ministry's decision to amend the Foreign Business Act earlier this month has drawn strong criticism from foreigners because it will require some of them to revise their shares to comply with the new rules.

You know the story. We don't have to go through that again.

But lawyers have raised concerns that the draft Act could be translated as the government's decision to "backtrack" from earlier commitments.

Thus, it might create a source for a legal case. Some fear that investors might file a case against Thailand at the World Trade Organisation (WTO) by claiming the Kingdom has gone back on earlier liberalisation commitments.

Skol Harnsuthivarin, secretary to the Commerce Ministry and also a retired commerce minister, has an answer to all these questions: "The WTO cannot take any action against us because we didn't change our shareholding commitment made to the WTO."

He said that amendment of the Foreign Business Act was meant to prevent some limited partnership companies from overruling the law by writing their own rules, especially when it comes to preferred shares.

On the question whether this would violate the criminal or civil code, Skol said it was unlikely.

He said the amnesty clause of the new law was comparable to the law governing gun owners. Just as violators are required to report to the Commerce Ministry within 90 days if their companies use nominees, if you are in possession of a gun, you must also notify the authorities within 90 days.

Then, there was a concern whether the amnesty clause under the amended Act would discriminate against the legal principle contained in the constitution, which ensures against unfair treatment.

Skol paused when he was asked this question. Then, the retired official who has been in the legal field for decades delivered his answer with a wry smile.

"As I said, the new law violates neither the WTO nor the criminal law," he said. "And why do you have to worry whether the new law will violate the constitution? We don't have one anyway. The constitution no longer exists after the coup."

Point taken.

Jeerawat@nationgroup.com