BANGKOK, April 29 (Reuters) – Shareholders in PepsiCo Inc’s Thai bottler, Serm Suk Pcl , voted on Friday to terminate its contracts with the U.S. soft drink maker after more than half a century in business together.

The move means the U.S. giant will have to find other partners to tap growth in the Southeast Asian country of 67 million people. It had no immediate comment.

From an American’s perspective as an observer in the Kingdom of Thailand the re-stratification mentioned above can be best observed by the increasing importance of regional organizations such as the Association of Southeast Asian Nations (ASEAN). Concurrently, American companies doing business in Thailand and Greater Asia are finding that some jurisdictions have different rules regarding corporate governance when compared to the United States. To continue quoting further from the aforementioned article:

About 99.41 percent of shareholders voted to end the business with PepsiCo. PepsiCo, maker of Pepsi-Cola, Sierra Mist and Tropicana juice, owns 41.54 percent of Serm Suk through Pepsi-Cola (Thai)Trading and Seven-Up Nederland BV. It remains unclear what it will do with this stake.

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It is interesting to note that shareholder voting rights can have a tremendous impact upon the governance of a corporation in Thailand as a Thai Company may be governed by Thai corporate law which can be substantially different in many ways to U.S. law on the same subject matter. For American readers, it should be noted that there may be benefits to be had for US companies in Thailand pursuant to the provisions of the US-Thai Treaty of Amity. That stated, although Amity Treaty Companies may be of benefit to some endeavors not all business activity can be undertaken pursuant to this Treaty. Therefore, those interested in further information on this subject may be best informed by contacting a Thai lawyer.

The ramifications of the shareholder vote noted above may be felt not only by Pepsi, but by others in the soft drink business in the Kingdom of Thailand and Greater Southeast Asia. To quote directly from a recent article entitled SSC Seals Pepsi Divorce from the Business section of the Bangkok Post‘s official website BangkokPost.com:

The transition period could create opportunities for rival Coke and new players such as the fast-rising Peruvian brand Big Cola to steal market share from Pepsi. Thailand has long been one of only a handful of cola markets in the world where Pepsi outsells Coke.

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Clearly the reverberations of the recent corporate vote could accrue to the benefit of Pepsi’s competitors within the Thai market. This blogger, simply as a consumer, has noticed what appears to be some increasing popularity for Big Cola mentioned above. This recent popularity may not necessarily mean that this soft drink will take Pepsi’s place as the number one soft drink in Thailand, but the whole incident may go to show the way in which the local Thai soft drink market is beginning to show an increasing taste for novelty. This trend toward novelty is increasingly palpable across much of the Thai economy as consumers are presented with increasing purchasing choices in the Kingdom. Meanwhile, it could be argued that the biggest beneficiary of the recent vote is Pepsi’s major international rival Coca-Cola which might pick up further market share as a result of a possible Pepsi decline.

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Bank Accounts are another major issue for those living in Thailand. Thai bank accounts can be difficult to open for those who do not have a valid Thai visa and work permit. Many Thai banks have different rules on this issue, but at the time of this writing, the prevailing rule seems to be that one needs a Thai work permit and visa in order to open a bank account. There are some who have noted that one may have less difficulty opening a Thai bank account if one has already obtained a Thai business visa and remains in lawful status on said visa. In certain situations, it may be possible for a foreign national to open a Thai bank account without a Thai work permit, but one should consult an attorney in Thailand regarding bank account setups without a work permit.

Mortgages are also an issue for foreign nationals wishing to remain for an extended duration in the Kingdom of Thailand. Thai banks are very reluctant to loan money to non-Thais. Therefore, a foreign national may find that it is very difficult to receive financing for an abode in Thailand. An ancillary issue is that of house registration, many foreigners find it is very difficult to obtain a foreign Tambien Baan (House Registration Booklet, also spelled Tabien Baan) from the local Amphur Office (Civil Registrar’s office). In the case of Thai mortgages, the foreigner’s financial situation will likely be the determining factor in actually obtaining a mortgage. As to the House Registration, success in this endeavor may hinge upon retaining a Thai lawyer.