shares giving a shareholder or group of shareholder in a (Thai) limited company priority or specified preferential rights in certain matters of the company limited over that of ordinary shareholders (as defined within a company's articles of association)
It is under Thai business laws not mandatory that equal rights and privileges are attached to all shares of a limited company. Some may be preferential either as to capital or as to dividend, or as to both, or may have privileges in the matter of voting. A Thai limited company structure with preference shares is a popular form of business entity among foreign investors in Thailand. The majority Thai owned company is under the current Foreign Business Act (section 4 (number of shareholding) and section 36 (nominee shareholder punishment)) considered Thai and the foreign investor as a minority shareholder is able to control the company through a preference share structure and circumvent foreign ownership or foreign business restrictions through the Thai limited company. However there is a discussion in the Thai government and Ministry of Commerce to amend the Foreign Business Act and include foreign voting rights and foreign management as a criterion in defining a company foreign or Thai. Such changes could affect existing companies.