Response from H.E U Sett Aung on letter to the editor in today the Voice daily.... I would warmly welcome anybody to share their thoughts and opinions and to constructively suggest anything. However, it seems that the author just wants to use a popular word who is above the law. Firstly, although the MTSH is a public limited company, it is established with the instruction of the government with a view to ensure inclusiveness by deliberately including the general public to participate as shareholders. If the general public dont buy the shares, the initial shareholders (i.e. 9 public limited companies) shall buy all the shares. If that is a case, it will not be owned by the majority of people and it will be owned by these 9 companies. As we really want the TMSH public limited company to be inclusive and to truly represent the majority of Myanmar citizens at various levels (i.e. not only the haves but also the have-nots), I had to provide information about this through press conferences, and interviews. The only thing I had in my mind the whole time was to make the process transparent and to clear the confusion of some people regarding the share purchase. I never meant to promote this because it was never necessary for such promotion as people have known about it and have been interested in Thilawa SEZ. Secondly, as per the Section 2(b) of the Security Exchange Law, ေငြေခ်းစာခ်ဳပ္ လုပ္ငန္း (which may be translated as securities business) is defined as (1) buying selling of shares (as proprietary trading) (2) buying and selling as a broker or agent (c) buying and selling as a dealer (3) as an advisor (4) ---- (6) ----, etc. Please note that these activities are the activities (trades) in the secondary market. This section does not stipulate about issuance of shares (which is one of the securities) by a public limited company. This section is about securities businesses conducted by securities companies. As per the Section 55(a), no company without having a license can do securities business. It means that only a licensed securities company can do securities business. The author seems to be a bit confused between securities company, which conducts securities business and public limited company which issues securities. Thirdly, the author should have known that the Security Exchange Law applies to the companies that are listed on the Security Exchange (i.e. stock exchange). The companies that are not listed on the stock exchange can issue and sell the shares as per the Myanmar Companies Act. Fourthly, selling the shares by any company never means that the proceeds are to be paid back to initial shareholders. For instance, in most countries, one of the requirements for a company eligible to be listed on a stock exchange is to present financial statements for the past three years. Hence, during the past three years, initial shareholders already invested and operations had commenced. If thats a case, if one thinks that listing on the stock exchange and selling the shares (after three years of operations) is to pay back to initial shareholders, thats absolutely wrong. I really look forward to having constructive suggestions and opinions. Nobody knows everything. We need to share and suggest each other. The more I learn and the more I try to understand, the more I understand that there are more to understand. During such evolutionary process of learning in our whole lives, lets share each other and learn together.
Posted on: Thu, 13 Mar 2014 05:49:57 +0000
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