Thailand's Constitutional Court on Wednesday disqualified a key opposition party leader as a member of parliament.
The ruling had been expected.
There are other cases pending against Thanathorn and his party, and there are widespread fears it will end up being disbanded, with its members banned from political office for several years.
The Constitutional Court cited the Department of Business Development as saying there has been no evidence of Thanathorn formally transferring his shares to his mother, as he had insisted in early January, which would have otherwise preceded his application for the electoral candidacy in the following month.
Thanathorn was prohibited from taking his seat in the lower house of the Thai parliament after the initial investigation by the Election commission found out that he had disregarded the law.
Thanathorn's now-vacant seat will be passed on to Manop Keereepuwadol, an FFP legislator, and the party has previously said it would push on regardless of the verdict. It said those cases had not been filed and processed by an investigative committee.
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The courtroom dominated Wednesday that Thanathorn Juangroongruangkit, chief of the Potential Forward Celebration, violated a regulation barring homeowners of media firms from functioning for Parliament.
His party also recently launched a campaign urging people not to accept the status quo and be willing to stand up for their rights.
Thanathorn has been a fierce critic of the army's involvement in politics and did particularly well among young voters in the election from which the pro-military party was declared the victor after a disputed ballot count.
He assured dozens of his supporters waving the party's signature orange flags that he has not given up and will remain the party leader.
Ahead of the court ruling Thanathorn thanked supporters at the court and said: "The Future Forward Party is a journey ..."
Prayuth Chan-ocha, who staged the 2014 coup and served as prime minister in the military government, took a second term after the Palang Pracharath Party formed a coalition to take power.