Diplomatist Magazine Diplomatist August 2018 | Page 48

PERSPECTIVE Topics Old Law (MCL 1914) New Law (MCL 2017) Constitution Memorandum & Article of Association (2 docs) One single Constitution Objective Required Not Required Minimum no. of Shareholder 2 1 Minimum no. of Director 2 1 Resident Director Class of Shares Only 1 class - Ordinary share More than 1 class; Ordinary, Preferences, Redeemable or Convertible Authorized Capital Required Not Required Par Value of Share Required Not Required Declaration of dividends Only from profi t Not necessarily from profi t. However, must pass the solvency test and must not materially prejudice the company's ability to pay its creditors Ability to do trading Foreign owned company & Foreign JV not allowed to do trading JV with ≥ 65% Myanmar ownership can do trading Director's Duties Not clearly defi ned Clearly defi ned However, several factors have damped investor enthusiasm in Myanmar in the past year due to a number of factors, including depressed global commodities prices and, not surprisingly, the Rakhine situation. Concerns over alleged use of excessive force by Myanmar security forces, in responding to terrorist attacks in October 2016 and August 2017, appear to have negatively infl uenced potential investors from some of the countries represented around the table today. Nevertheless, Chinese, Thai, Singaporean, Korean and Japanese have moved in to fi ll the investment gap. They have been investing in infrastructure, transportation, real estate and small industries. In addition to these new laws, Myanmar has prioritized certain sectors to increase foreign investment. Examples include agro-processing, manufacturing of import-substitute products, logistics services etc. The country has recently issued a notifi cation welcoming foreign investment in the education sector too. Indeed, new opportunities are being created every day as ASEAN seeks to promote connectivity. Myanmar is also the fi rst country that India sees when it seeks to implement its “Look East” and “Act East” policy. The active engagement of neighbouring countries will no doubt have a positive impact on Myanmar’s trade and investment growth over the medium term. Myanmar has also signalled its intention to open up by launching a number of trade-related development plans and frameworks: they include the National Export Strategy; the Master Plan for the Establishment of the Myanmar Trade Promotion Organization; the Private Sector Development Framework and Action Plan and a Gap Assessment on the ASEAN Trade in Goods Agreement. We invite all investors to invest in Myanmar. Supported by the business-friendly Government Agency, which is Myanmar Investment Commission and favorable investment environment that we have created, it is ensured that all investors can do business smoothly and successfully in Myanmar. We have many challenges but there is no challenge that we cannot overcome. We want Myanmar to emerge as a reliable partner to investors – a country that seeks to build relationships with old friends and new ones alike. With the new investment and business regulatory and administrative changes in place, we are sending a clear message to the world: “Myanmar is open and welcome for investment”. * Author is director general, Directorate of Investment and Company Administration, and Secretary of Myanmar Investment Commission 48 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 8 • August 2018, Noida