A post-consultation draft of Burma's new Companies Law has been published by the Directorate of Investment and Company Administration: see here (English, pdf).
The duties of directors will, for the first time, be set out in legislation: see sections 164 to 172. Section 166 contains the duty to act in good faith in the company's best interest and it is noteworthy that it provides guidance on how this duty operates where the director of a wholly-owned subsidiary acts in the interests of the subsidiary's parent company. An oppression remedy is provided by section 192 and section 196 provides for the bringing of derivative claims. Information about the current company law framework is available here.
Update (18 November 2016) - a fifth draft was published in October 2016: see here (pdf).
Wednesday, 13 July 2016
Burma: New Companies Law - post-consultation draft published
A post-consultation draft of Burma's new Companies Law has been published by the Directorate of Investment and Company Administration: see here (English, pdf).
The duties of directors will, for the first time, be set out in legislation: see sections 164 to 172. Section 166 contains the duty to act in good faith in the company's best interest and it is noteworthy that it provides guidance on how this duty operates where the director of a wholly-owned subsidiary acts in the interests of the subsidiary's parent company. An oppression remedy is provided by section 192 and section 196 provides for the bringing of derivative claims. Information about the current company law framework is available here.
Update (18 November 2016) - a fifth draft was published in October 2016: see here (pdf).
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