Myanmar—restructuring and insolvency guide
Produced in partnership with Nishant Choudhary of DFDL

The following Restructuring & Insolvency practice note produced in partnership with Nishant Choudhary of DFDL provides comprehensive and up to date legal information covering:

  • Myanmar—restructuring and insolvency guide
  • Questions
  • What is the primary legislation which governs corporate insolvency? And, are there any other laws in force dealing with corporate insolvency?
  • Is there any conflict of provisions in the corporate insolvency laws?
  • Who can initiate a corporate rehabilitation proceeding under the insolvency laws?
  • What are the rights of secured versus unsecured creditors for corporate insolvency proceedings?
  • When can a receiver/liquidator be appointed? And, who can appoint a receiver under the applicable laws?
  • What are the protections available to a company during the corporate insolvency proceeding?
  • Does the law separately provide for the duties of directors and how does it pave with the existing laws?
  • Are there any restrictions on the power of directors with the onset of corporate insolvency?
  • More...

Myanmar—restructuring and insolvency guide

Questions

What is the primary legislation which governs corporate insolvency? And, are there any other laws in force dealing with corporate insolvency?

The primary legislation dealing with corporate insolvency is the Insolvency Law of 2020 (the Insolvency Law). While the Insolvency Rules of 2020 (the Insolvency Rules) have also been framed, the Insolvency Rules are yet to be enforced.

The Yangon Insolvency Act of 1909 (YIA) and the Myanmar Insolvency Act of 1920 (MIA) were the existing laws (now repealed) that governed the insolvency and bankruptcy regime in Myanmar. The Myanmar Companies Law (MCL) includes provisions in relation to winding-up of companies incorporated under the MCL in Part V; however, the operation of those provisions is effectively suspended in favour of the Insolvency Law.

Is there any conflict of provisions in the corporate insolvency laws?

The Insolvency Law repeals both the YIA and MIA. However, Part V of the MCL, which deals with winding-up of companies, is not repealed by the Insolvency Law. With the commencement of the Insolvency Law, the winding-up of companies, incorporated and unincorporated micro, small and medium enterprises (MSME) and partnerships must be carried out as per the Insolvency Law and not under the MCL.

However, the Insolvency Law would not apply to the winding-up of any company or partnership or bankruptcy of an individual which commenced before the commencement of this Law.

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