Amendments to Myanmar Companies Act up for Parliamentary Discussion
By Kyaw Hsu Mon 17 January 2017
RANGOON — Suggested amendments to the Myanmar Companies Act have been written and submitted by the Ministry of National Planning and Finance to the government for discussion in upcoming Union Parliament sessions.
The Myanmar Companies Act was established in 1914, when Burma was under British rule. The National Planning and Finance Ministry has, in a new draft, modified information now considered out-of-date and added relevant details for investors.
“We sent this to the government early this month and it will be sending it to Parliament too,” said U Than Aung Kyaw, deputy director general of the Directorate of Investment and Company Administration.
He added that the amendments are intended to benefit all investors.
“It’s old, and that’s why it should be updated for everyone,” U Than Aung Kyaw said.
The updated act will include suitable clauses relevant to local and foreign investors, as well as updated policies on economic trends.
U Aung Naing Oo, secretary of the Myanmar Investment Commission, told local media last week that the draft Myanmar Companies Act would propose allowing foreign companies to join the Yangon Stock Exchange.
Lower House lawmaker Mi Kon Chan said that Parliament is expected to discuss the law in February.
“We still don’t know which laws and acts will be discussed at which time, but this Companies Act should be discussed as it can help the business industry,” she said, adding that laws enacted during Burma’s colonial era are “out of date.”
According to parliamentary processes, after the modified version of the law has been received by the draft law committee, lawmakers will discuss which amendments are suitable.
Dr. Maung Maung Lay, Vice President of the Union of Myanmar Federation of Chambers of Commerce and Industry, said he hoped the Myanmar Companies Act would be approved as soon as possible after a discussion is held in both Houses of Parliament.
“Quick approval is good, but it should also be carefully discussed too. After that, I hope local and foreign investors will get better opportunities for doing business here,” he said.
The enactment of appropriate orders and notices will be required following the approval of any amendments, he added.