MYANMAR COMPANIES LAW V – WINDING UP ... This Law shall be called the Myanmar Companies Law. (b) This…

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<ul><li><p>i </p><p>MYANMAR COMPANIES LAW (Unofficial Translation) </p></li><li><p>ii </p></li><li><p>iii </p><p>DRAFT MYANMAR COMPANIES LAW </p><p>TABLE OF CONTENTS </p><p>PART I PRELIMINARY ........................................................................................................................... 1 </p><p>Division 1: Citation, commencement and definitions ...................................................................... 1 </p><p>PART II CONSTITUTION, INCORPORATION AND POWERS OF COMPANIES ............................. 8 </p><p>Division 2: Registration of companies ............................................................................................. 8 </p><p>Division 3: Nature of companies ..................................................................................................... 8 </p><p>Division 4: Incorporations and registrations under this Law ........................................................... 9 </p><p>Division 5: The company constitution ........................................................................................... 12 </p><p>Division 6: Company names .......................................................................................................... 15 </p><p>Division 7: Company dealings ....................................................................................................... 16 </p><p>Division 8: Activities prior to registration ..................................................................................... 18 </p><p>Division 9: Other corporations authorised to register or taken to be registered under this Law.... 20 </p><p>Division 10: Change of company type ........................................................................................... 27 </p><p>PART III SHARES AND MATTERS RELATING TO A COMPANYS CAPITAL ............................ 30 </p><p>Division 11: Shares and other securities ........................................................................................ 30 </p><p>Division 12: Transfers of shares and other securities .................................................................... 36 </p><p>Division 13: Registers and certification of interests in a company ................................................ 37 </p><p>Division 14: Dividends .................................................................................................................. 43 </p><p>Division 15: Transactions and matters affecting share capital....................................................... 45 </p><p>PART IV MANAGEMENT, ADMINISTRATION AND GOVERNANCE; OFFERS OF </p><p>SECURITIES TO THE PUBLIC; GRANT OF SECURITY BY A COMPANY; MAINTENANCE OF </p><p>COMPANY ACCOUNTS .......................................................................................................................... 56 </p><p>Division 16: Office and name ........................................................................................................ 56 </p><p>Division 17: Meetings and proceedings ......................................................................................... 57 </p><p>Division 18: Directors and their powers and duties ....................................................................... 67 </p><p>Division 19: Members rights and remedies ................................................................................... 81 </p><p>Division 20: Matters relating to share offers by public companies ............................................... 86 </p><p>Division 21: Share offers by corporations incorporated outside the Republic of the Union of </p><p>Myanmar ........................................................................................................................................ 96 </p></li><li><p>iv </p><p>Division 22: Mortgages and charges granted by a company ......................................................... 99 </p><p>Division 23: Appointment of receivers, keeping of book and registration of charges granted by </p><p>corporations incorporated outside the Republic of the Union of Myanmar ................................. 105 </p><p>Division 24: Financial Reports and Audit ................................................................................... 106 </p><p>Division 25: Arbitration, compromise with creditors and members and buy-out rights ............ 116 </p><p>PART V WINDING UP ......................................................................................................................... 119 </p><p>Division 26: Winding up a company ........................................................................................... 119 </p><p>Division 27: Winding up of unregistered companies ................................................................... 154 </p><p>PART VI THE REGISTRAR, REGISTRATION OFFICE, REGISTRATION OF DOCUMENTS, </p><p>POWERS OF INSPECTION AND FEES; REMOVAL OF COMPANIES FROM THE REGISTER ... 157 </p><p>Division 28: The Registrar, registration office, registration of documents, powers of inspection </p><p>and fees and removal of companies from the register.................................................................. 157 </p><p>PART VII PROCEEDINGS; OFFENCES; REGULATIONS AND TRANSITIONAL PROVISIONS</p><p> 165 </p><p>Division 29: Jurisdiction of the Courts and legal proceedings .................................................... 165 </p><p>Division 30: Offences and defences ............................................................................................ 175 </p><p>PART VIII MISCELLANEOUS ........................................................................................................... 180 </p><p>Division 32: Regulations, notifications and guidelines................................................................ 180 </p><p>Division 31: Savings and transitional provisions ......................................................................... 181 </p></li><li><p>1 </p><p>MYANMAR COMPANIES LAW </p><p>(2017, PyidaungsuHluttaw Law No.29) </p><p>6th December 2017 </p><p>The Pyidaungsu Hluttaw hereby enacts this Law. </p><p>PART I </p><p>COMMENCEMENT AND DEFINITIONS </p><p>Division 1 </p><p>Name, commencement and definitions </p><p>1. Citation and commencement of this Law and definitions </p><p>(a) This Law shall be called the Myanmar Companies Law. </p><p>(b) This Law commences on the date of notification determined by the President of the </p><p>Union. </p><p>(c) In this Law, unless the context otherwise implies: </p><p>(i) applicable law means any law, rule, regulation, by-law, notification or order </p><p>having the force of law in the Union which may have an effect on the matter </p><p>concerned; </p><p>(ii) associate: </p><p>(A) specifically, in relation to a company, means: </p><p>(I) a director or secretary of the company; </p><p>(II) a related body corporate; </p><p>(III) a director or secretary of a related body corporate; and </p><p>(IV) a person who controls the company, or who is controlled by the </p><p>company; and </p><p>(B) generally, in relation to a person (including a company), means: </p><p>(I) a person in concert with whom the person is acting, or proposes </p><p>to act in relation to the relevant matter; </p><p>(II) a person with whom the person is, or proposes to become, </p><p>associated, whether formally or informally, in any other way in </p><p>relation to the relevant matter; and </p><p>(III) a prescribed person in relation to the relevant matter, </p></li><li><p>2 </p><p>(C) does not in any case include someone who may otherwise be considered </p><p>an associate under paragraphs (A) or (B) merely because they: </p><p>(I) give advice to the person, or act on the persons behalf, in the </p><p>proper performance of the functions attaching to a professional </p><p>capacity or a business relationship; or </p><p>(II) have been appointed to as a proxy or representative of a person at </p><p>a meeting of members, or of a class of members, of a company. </p><p>(iii) authorised officer means a person ordinarily resident in the Union who is </p><p>appointed by an overseas corporation to act as its representative for the purpose </p><p>of this Law; </p><p>(iv) board or board of directors mean in relation to a company or other body </p><p>corporate mean directors of the company acting together as a board of directors </p><p>(which will be the single director in the case of a single director company); </p><p>(v) company means a company incorporated and registered under this Law or an </p><p>existing company; </p><p>(vi) contributory means every person liable to contribute to the assets of a company </p><p>in the event of its being wound up, and, in all proceedings for determining and in </p><p>all proceedings prior to the final determination of the persons who are to be </p><p>deemed contributories, includes any person alleged to be a contributory; </p><p>(vii) corporation means a body corporate formed under a law other than this Law, </p><p>including a law of a jurisdiction other than the Union, whether or not it is </p><p>registered under this Law; </p><p>(viii) Court means the Court having jurisdiction under this Law; </p><p>(ix) debenture means a security issued by a company to borrow money and </p><p>includes debenture stock; </p><p>(x) director for the purpose of this Law of a company or other body corporate, </p><p>means: </p><p>(A) an individual person who is appointed to the position of director or is </p><p>appointed to the position of alternate director and is acting in that </p><p>capacity; or </p><p>(B) a person who, while not appointed to the position of director or alternate </p><p>director: </p><p>(I) acts as if appointed in the position of director; or </p><p>(II) has wishes or provides instructions that the directors of the </p><p>company or body are accustomed to acting in accordance with or </p><p>who otherwise exercises or controls the exercise of powers which </p><p>would fall to be exercised by the board. </p><p>Sub-section (B)(II) does not apply merely because the directors act on the </p><p>advice of a person given in the proper performance of the persons </p></li><li><p>3 </p><p>professional functions or due to a business relationship that the person </p><p>has with the directors, company or body; </p><p>(xi) existing company means a company formed and registered under any repealed </p><p>law; </p><p>(xii) expert includes, for the purposes of section 214, an engineer, valuer, </p><p>accountant and any other person whose profession gives authority to a statement </p><p>made by him; </p><p>(xiii) financial assistance includes the giving of financial assistance by means of the </p><p>making of a loan, the giving of a guarantee, the provision of security, the release </p><p>of an obligation or the release of a debt or otherwise; </p><p>(xiv) foreign company means a company incorporated in the Union in which an </p><p>overseas corporation or other foreign person (or combination of them) owns or </p><p>controls, directly or indirectly, an ownership interest of more than thirty-five per </p><p>cent; </p><p>(xv) holding company in relation to a body corporate, means a body corporate of </p><p>which the first body corporate is a subsidiary; </p><p>(xvi) Ministry means a Ministry of the Union or a successor body, or such other </p><p>body as may be formed under an applicable law which is responsible for the </p><p>administration of this Law and the implementation or supervision of the </p><p>Registrars functions; </p><p>(xvii) officer of a company or a body corporate means a person who: </p><p>(A) makes, or participates in the making of decisions that affect the whole, or </p><p>a substantial part, of the business of the company or body; or </p><p>(B) has the capacity to significantly affect the companys or bodys financial </p><p>standing; </p><p>(xviii) option means a right to acquire or dispose a share or security at an agreed price </p><p>at a point in time; </p><p>(xix) ordinarily resident means a person who is a permanent resident of the Union </p><p>under an applicable law or is resident in the Union for at least 183 days in each </p><p>12 month period commencing from: </p><p>(A) in the case of an existing company or a body corporate registered under a </p><p>repealed law, the date of commencement of this Law; and </p><p>(B) in the case of any company or body corporate registered under this Law, </p><p>the date of registration of the company or body corporate. </p><p>(xx) ordinary resolution means a resolution which has been passed by a simple </p><p>majority of the votes of members entitled to vote as are present in person or by </p><p>proxy (where allowed) at a general meeting of which notice specifying the </p><p>intention to propose the resolution as an ordinary resolution has been duly given; </p></li><li><p>4 </p><p>(xxi) overseas corporation means a body corporate that is incorporated outside the </p><p>Union; </p><p>(xxii) ownership interest means a legal, equitable or prescribed interest in a company </p><p>which may arise though means including: </p><p>(A) a direct shareholding in the company; </p><p>(B) a direct or indirect shareholding in another company which itself holds a </p><p>direct shareholding, or an indirect shareholding, in the first company; or </p><p>(C) through an agreement which provides the holder with a direct or indirect </p><p>right to exercise control over the voting rights which may be cast on any </p><p>resolution of the company; </p><p>(xxiii) prescribed means prescribed by or in any rules, regulations, by-laws, </p><p>notifications, orders, directives, table or form made under this Law; </p><p>(xxiv) previous law means the Myanmar Companies Act 1914; </p><p>(xxv) private company means a company incorporated under this Law or under any </p><p>repealed law which: </p><p>(A) must limit the number of its members to fifty not including persons who </p><p>are in the employment of the company; </p><p>(B) must not issue any invitation to the public to subscribe for the shares, </p><p>debentures or other securities of the company; and </p><p>(C) may by its constitution restrict the transfer of shares. </p><p>Provided that where two or more persons hold one or more shares in a company </p><p>jointly they shall, for the purposes of this definition, be treated as a single </p><p>member; </p><p>(xxvi) promoter means, for the purposes of section 214, a promoter who was a party </p><p>to the preparation of the prospectus, or the portion thereof containing the </p><p>misleading or untrue statement, but does not include any person by reason of his </p><p>acting in a professional capacity for persons engaged in procuring the formation </p><p>of the company; </p><p>(xxvii) prospectus means any prospectus, notice, circular, advertisement or other </p><p>invitation, offering to the public for subscription or purchase any shares or </p><p>debentures or other securities of a company, but shall not include any trade </p><p>advertisement which shows only that a formal prospectus has been prepared and </p><p>filed; </p><p>(xxviii) public company means a company incorporated under this Law, or under any </p><p>repealed law, which is not a private company; </p><p>(xxix) registrable interests means any securities for which a company maintains a </p><p>register in accordance with Division 13; </p></li><li><p>5 </p><p>(xxx) registered office, for the purposes of jurisdiction to wind up companies, means </p><p>the place which has longest been the registered office of the company during the </p><p>six months immediately preceding the presentation of the petition for winding up; </p><p>(xxxi) Registrar means the Directorate of Investment and Company Administration, </p><p>its successor, or such other Union level body or person as may be appointed to </p><p>perform under this Law the duty of registration of companies and exercise the </p><p>other powers and perform the other functions and duties assigned to the Registrar </p><p>under this Law or other applicable law; </p><p>(xxxii) related body corporate of a body corporate (which includes a company) means: </p><p>(A) a holding company of the body corporate; </p><p>(B) a subsidiary of the body corporate; or </p><p>(C) a subsidiary of a holding company...</p></li></ul>

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