May 16, 2016

Myanmar Economic Holding Limited Transforms into Public Company

Myanmar Economic Holding Limited announced that the firm, owned by the military, has been transformed into a public company.

Myanmar Economic Holding limited was established on April 27, 1990. At present, shareholders are divided into group “A” and group “B”. The shares of group “A” were increased by the Ministry of Defence and the Office of Procurement Director under the office of chief-of-staff (Infantry) and the shares of group “B” are contributed by military servants, ex-military servants, military battalions and units, and veteran organisations.

Now, the shares of group “A” are transformed as the shares of group “B” according to the Myanmar Companies’ Act, 1914, in order for the firm to transform as a public company.

Economic Holding limited operates in various industries such as industrial services, gem production and trading, timber production, banking, hotels, transportation and construction, among other.

Businesspeople lauded the move as the formerly-opaque firm embarked on a reform path. “Because it will not be owned by the army, matters on giving privilege will be stopped and also non-transparent matters will diminish. If it follows the public company law, the public may be allowed to participate at one time,” said Dr Soe Tun, chairman of Myanmar Rice Federation.

“Moreover, by transforming as a public company, the corporation may be free from the economic sanctions of the US. Later, it may become more transparent and achieve public trust,” he added.

Source: Myanmar Business Today