Corporate Governance
Corporate governance is a system that manages transparently a company or an organization with sufficient precise, practical rules and regulations. In other words, corporate governance is establishing a good environment with the complement of responsibility and accountability to create the secured investment opportunity to the trust of the people for the reputation, financial stability and long-term investment of the companies doing business.
Effective corporate governance is a very important part in building sustainable development of each company or each organization. As Myanmar companies, it is a crucial assignment to exercise the good corporate governance practices whether they are expanding their business, enhancing more sound relationship with international partners, and planning future development programs.
If so public companies and listed companies have to be strengthening their corporate governance mechanism that the potential investors shall trustfully invest in the market. In addition, it will facilitate when entering to the Yangon Stock Exchange (YSX) as a listed company.
Following up the concerning obligations and responsibilities to be good corporate governance mechanism for the key persons of a company or an organization such as Chairman, Board of Directors, Chief Executive Officer, Chief Auditor and Shareholders, SECM has issued the Notification on Requirements for Effective Corporate Governance (2/2022) and Instruction on Material Related Party Transactions for Listed Companies and Public Companies with More than One Hundred Shareholders (3/2020) on 3rd December 2020.
Moreover, Myanmar companies should be encourage to read and study the Myanmar Corporate Governance Scorecard 2018 (A Report on the Assessment of Myanmar Companies) published in April 2019 which collaborated by the International Finance Corporation (IFC), the Securities and Exchange Commission (SECM), the Directorate of Investment and Companies Administration (DICA) and the Yangon Stock Exchange (YSX) in order to make self-assessment the corporate governance practices and what find out the needs.