PAPER 2- for the legal environment of business and online commerce Essay

PAPER 2- for the legal environment of business and online commerce - Essay Example Thailand’s economic system is based primarily on exporting, which accounts for greater than two-thirds of the Gross Domestic Product (GDP). The exchange rate for exporting is Baht 33.00/USD. The GDP has an average worth of 8.5 trillion Baht, equivalent to $627 billion dollars. Thailand is classified as the second largest economic country in Southeast Asia. However, it ranks halfway in the spread of wealth in Southeast Asia, the fourth richest nation. Its economy supports neighboring, developing economies, such as Laos, Burma, and Cambodia. Thailand had a financial crisis in 1997-1998, forcing the country to depend on exports. Its economic system is influenced by the automotive and manufacturing of electronic good for exports. Thailand focuses on agriculture but has decreased due to exporting goods and services. Corporate Ownership in Thailand is established by registering as a Thai limited company. After registration, the registered applicant can acquire land. The structure of this ownership consists of a minimum of seven permanent, distinct shareholders. The director of the corporate ownership must be a foreigner. However, initially, the director is Thai because the Thai individual has to apply for a Tax ID and VAT registration for the company. In the Thai Law or Land Code, Thai nationals have at least 51% of the shares. A maximum of 49% of shares can be owned by foreign shareholders. This rule is also in the Land Code Prohibition of foreign land ownership. Since Thai Law does not restrict one share equaling one vote, the company is allowed to issue classified shares, which are the A-Shares or Ordinary Shares and the B-Shares or preferred Shares. The A-Shares or Ordinary Shares states that the holder of one share is entitled to one vote. However, the B-Shares or Preferred Shares state tha t only a shareholder of multiple shares obtains a vote. Foreign shareholders are assigned A-Shares, and B-Shares are assigned to Thai