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Draft Revised Guidelines on Beneficial Ownership Disclosure (Philippines)
Patricia O. Ko
- Corporate
- General Corporate
- Global Practice
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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.
1. Background
Treasury shares are shares which are owned by the issuing company as a result of buyback from its shareholders under certain circumstances permitted by law. In Thailand, numerous public limited companies established under the Public Limited Company Act (“Company”) use the treasury share mechanism as a financial tool for various purposes, e.g., returning profits to shareholders, and creating a financially attractive image. There are laws outlining the concept and the process of share buyback for the Company. Recently, there has been an attempt to amend the law concerning the treasury share and the cabinet has approved the draft amendment of such law on 9 February 2021 which turns the spotlight on this matter. Thus, this article will elaborate on the concept of treasury share under the current relevant laws and provide a glimpse of the updated amendment thereon.
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