No corporate insolvency yet reported under Insolvency Law

28 July

NO corporate or personal insolvency has been reported yet under the Insolvency Law of Myanmar, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration (DICA).

The Insolvency Law came into effects on 25 March 2020. The DICA is responsible for the insolvency register. 

“We are trying to update online registry system MyCO for insolvency register, he said.

At present, there is no corporate insolvency or personal bankruptcy registered on DICA. However, the dissolution or deregistration of the company is reported to the directorate, he continued. 

“The DICA receives the report for dissolution of corporate enterprises.

However, they use the term dissolution only. It is regarded under Myanmar Companies Law. Otherwise, there are rules for Insolvency Law. After the Law came into force on 25 March 2020, an effective liquidation or winding-up process for non-viable businesses is provided under the Insolvency Law. The government is scaling up its capacity in full momentum. The Union Attorney General’s office, the office of the Auditor-General and the relevant entities from the private sector engage in this, he noted.

The provisions under the Insolvency Law and Myanmar Companies Law differ. The DICA is still observing the regulations of the Insolvency Law. 

The Insolvency Practitioners’ Disciplinary Committee and Insolvency Practitioners’ Regulatory Council are jointly making efforts to appoint qualified insolvency practitioner, said U Thant Sin Lwin.

By Nyein Nyein (Translated by Ei Myat Mon)