Message from the Legal Advisor

UTheinShwe

U Thein Shwe
Legal Advisor

1. Introduction

By the authorized permission of Directorate of Investment and Company Administration, the company’s registration certificate with registration no-3010/2012-2013 was issued in accordance with companies’ law of Myanmar.

The Business Commencement Certificate no-13/ 2012-2013 was issued on 18.12.2012. Afterwards, according to Myanmar Nain Ngan Companies’ Act-77, the Statutory Meeting was held on June 15, 2013. According to Myanmar Nain Ngan Companies’ Act-76 the first and foremost annual meeting was held in the year 2014; the second annual meeting was held in the year 2015. And today on August 29, 2016 the third annual meeting is also held according to Myanmar Nain Ngan Companies’ Act-76.

2. Undertakings of Legal Advisory Body

Since the time the company was not yet registered and by the request of Board of Directors, the Legal Advisory Body had given the advice on legal matters with regard to companies’ initial stage of work to be carried out with systematic procedure, especially the advice to establish a public company was already provided to enable the company to carry out the work beneficial to the public and the state.

The Board of Directors of Great Hor Kham Public Company Limited is suggested to do the implementation of the company’s business in accordance with companies’ law; to always keep the company financial accounts true and accurate, the external audit firm in co-operation with the Legal Advisory Body have participated in the company’s co-ordination meeting held at the head office in Muse as well as in Yangon; Moreover, if necessary, the questions made by means of telephone or e-mail are also answered by the Legal Advisory Body with suggestions from legal points of view.

3. Booming Company’s Business

Within three years, a great success was achieved as follows because of good governance and leadership of Managing Director U Sai Ohn Myint and the Board of Directors’ skill and diligence in the companies’ work and regular discussion on the process of company’s business especially with the technicians such as lawyers, economists, geologists and engineers.

  1. In consequence of the company’s well-planned programs of work that has been improving, the company’s dividends could be distributed every year to the company’s shareholders.
  2. In Myanmar market economy there are a number of 210 public companies’ out of which the only six companies are officially listed and allowed to do sale of securities (public offering) to the public. The GHK could stand as one of the six listed companies.
  3. The Memorandum of Agreement (MOA) has been made between the Department of Electric Power Management under the Ministry of Electric Power in Myanmar Nain Ngan Taw and the GHK in order to generate 20 MW of Nam Paw Hydro Power electricity.

4. Capital Raise

At present the GHK is carrying out the submission of application for permission to the ministry concerned to implement Nam Paw Hydro power Project according to the Investment law for Myanmar.

The initial amount of the company’s authorized capital was 50,000 Lakhs; in compliance with the magnitude of company’s business, it is planned to raise the current authorized capital into 300,000 Lakhs and the submission of application for permission was already carried out and submitted to the Department of Companies’ Administration.

5. Comment & Suggestion

  1. The GHK has made the agreement of MOA with the Ministry of Electric Power with an intention to obtain permission form the Investment Commission. In case of necessity or difficulty, the GHK can make a claim to the MOEP for help and assistance by referring to the clauses in the MOA by providing suitable reasons.
  2. The necessary preparations have to be made in accordance with presided law for sale of securities & bonds of the Stock and Share Market to the public.
  3. The Great Hor Kham Public Company Limited has to do their well-planned business with good quality of work and service of international standard & fair returns and dealings. The Board of Directors is obliged to do their best for the success of company’s well-planned business.
  4. A team of consultants consisting of experienced technicians such as lawyers, geologists & engineers should be organized & formed in order to provide their leading guidance to be practiced by Board of Directors in carrying out the company’s business.
  5. Myanmar’s neighboring countries should be invited to the international workshop & forum held in Myanmar for discussion on trading and investment & exchange of opinions & ideas, the Legal Advisory Body would like to suggest.

6. Conclusion

Within a short term period, the Great Hor Kham Public Company Limited has made remarkable progress and success in their company’s business. Their achievement is the result of great effort the company has made. Based on this success and progress the Great Hor Kham Public Company is encouraged to move forward for further improvement and development like a rising sun in the east and a full moon in the sky, the Legal Advisory Body has made a wish.