How the New Companies Law Affects Group Financing TransactionsSeptember 30, 2018
Myanmar Companies Law 2017 (“MCL”) has introduced a special corporate approval procedure for “related party transactions” into the Myanmar legal system. While such type of transactions are often subject to particular scrutiny under corporate governance laws in many jurisdictions, there are a number of peculiarities to be followed under the MCL, and they are summarised below.
Highlights of this note
- What can be a related party transaction
- Approval procedure
- Loan or guarantee to a holding or sister company
- Loan or guarantee for a company with the same director
- Practical observations and recommendations