It is common for foreign investors to do business in Thailand through a joint venture arrangement with a local Thai partner since forming a joint venture not only provides a strong potential for growth and innovative ideas, but also increases a greater capacity, resources, technical expertise, and access to established markets and distribution channels.
Nevertheless, due to legal restriction, the foreign investors entering into a joint venture in Thailand often hold minority shares while the remaining majority shares are held by their local Thai partners. Thus, a common issue faced by the minority shareholders is how to protect their investment benefits.
Joint Venture Agreement
Among other legal options, it would be prudence to first prepare and execute a Joint Venture Agreement (or Shareholder Agreement) which governs the rights and obligations amongst the shareholders in terms of…
