Problems relating to Trade and Investment on Myanmar
4. Restrictions on withdrawal of operations |
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Issue |
Issue details |
Requests |
Reference |
| (1) Complex Procedures for Capital Reduction | - If a company is incorporated under the Foreign Investment Act, Article 55 of Myanmar Companies Act provides: "Subject to the provisions stipulated in the Annex to Article of Association and to the confirmation by the Court, a company limited by shares, if so authorized by its articles, may by special resolution reduce its share capital in any way..." It will probably take a long time and much work to obtain the Court's confirmation. (Due to the inadequate financial system and in the absence of assurance that the bank borrowing is readily available, at the outset of its operation, foreign investors have no alternative but to invest funds in excess of the basic requirement. However, after passage of certain period, there is a high possibility for capital reduction, the procedures of which take much work.) | - It is requested that GOM takes steps to: -- remove the provisions relative to the Court Confirmation, or -- expedite the Court's Confirmation Process. |
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