Monday, November 5, 2012

Burma eases rules for forming public companies

Monday, 05 November 2012 13:38 Khin Myo Thwe

The Directorate of Investment and Company Administration (DICA) has announced that the rules and regulations have been eased for the establishment of public companies.

“Starting on 25th October, any type of business can be registered as a public company,” said an official last week.

The DICA, which falls under the authority of the Ministry of National Planning and Economic Development, said that businesses or firms can register as public companies providing they fall under one of eight sectors: trading, the service industry, manufacturing, construction, jewelry, hotels, tourism and banking.

A DICA representative said that to build trust among the public, the domestic media will publish financial details about the companies and information about their directors. He said that the board of directors must present evidence of the company’s wealth and assets, and each director must sign an oath.

The directors must be responsible to the shareholders, he said, adding that the companies must regularly hold general meetings to advise and update shareholders.

The DICA representative said that all public companies must conduct their financial business and security exchange business in accordance with the relevant rules and regulations.

“We welcome the easing of restrictions applicable to the establishment of public companies,” said the vice-chairman of the Republic of the Union of Myanmar Federation of Chamber of Commerce & Industry. “Such companies are needed in each business sector to make partnerships with foreign investors.”

The DICA announced that a minimum of 500,000 kyat (US $600) will be required to register as a public company.

Only a dozen or so firms in Burma are currently registered as public companies, including First Myanmar Investment Company, Myanmar Citizens Bank, and Myanmar Agribusiness Public Corporation.

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