YSX launch to usher in a new world in Myanmar Corporate Governance (Part 2).
Launched in December 2015, the Yangon Stock Exchange (YSX) released an announcement of its listing criteria, followed by a securities listing business regulations document, the Business Regulations, as well as an enforcement regulations document clarifying the application of the Business Regulations.
Section 8 of the Business Regulations informs that listing applicants and their corporate groups will be subject to a substantive examination, which entails whether 'corporate governance and internal management systems are appropriately established and functioning'.
This article examines the specifics of the terms 'corporate governance' and 'internal management systems' as they have been interpreted in the current forms of the documents against the typical elements of corporate governance seen in many overseas markets. It also analyses what can be a way forward in terms of supplementing the existing governance requirements, as well as how these building blocks apply/are relevant to local companies that have plans to get listed.
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