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1. Insolvency Law

Insolvency Law

Part I

Chapter I

Title and Commencement

  1. Title and commencement

Chapter II

Definitions

  1. Definition
  2. Notice and declaration
  3. Taking action
  4. Duties and powers of Registrar

Part II

Objective

  1. Objectives

Part III

Insolvency Practitioners

Chapter I

Preliminary

  1. Application of this Part

Chapter II

Registration as Insolvency Practitioners

  1. Morals to be followed

Chapter III

Restrictions on practicing as Insolvency Practitioner by Ineligible Persons

  1. Practicing without prescribed eligibility
  2. Persons ineligible to practise as Insolvency Practitioner
  3. Keeping the Register of Insolvency Practitioner
  4. Grant of Registration Certificate
  5. Yearly renewal of Registration Certificates
  6. Untruthful representation

Chapter IV

Supervisory Council of Insolvency Practitioners

  1. Formation
  2. Duties and Powers of Council
  3. Formations of Committees and Assigning Duties
  4. Foreign Insolvency Practitioners

Chapter V

Insolvency Practitioners’ Association

  1. Recognition to Association
  2. Objectives of Association
  3. Membership

Chapter VI

Detriment and Investigation

  1. Detriments caused by the Insolvency Practitioners
  2. Causing the Association to investigate the complaints
  3. Taking action by the Disciplinary Committee according to the report of Association
  4. The Court may make orders in respect of the Insolvency Practitioners
  5. Applying the decision of the Disciplinary Committee to the Council by sufferer

Part IV

Receiving

Chapter I

General Provisions

  1. Meaning of Receiver
  2. Receiver may be appointed

Chapter II

Appointment of Receiver outside the Court, Vacancy, Powers and Responsibilities

  1. When to appoint Receiver
  2. Powers of Receiver
  3. Liability of Receiver
  4. Duty to care in selling property
  5. Vacancy in office of Receiver

Chapter III

Functions of Receiver and Power of the Court

  1. Duty to report by the Receiver
  2. Declaration relating to the matters of Company
  3. Report of Receiver
  4. Duties of Receiver in respect of financial records and bank accounts
  5. Power of the Court to fix remuneration
  6. The Court may direct

Part V

Company Rescue and Rehabilitation

Chapter I

Nature of Rehabilitation Process

  1. Rehabilitation Process
  2. Objectives of Rehabilitation Arrangement
  3. Supervision of the Court

Chapter II

Appointment of Rehabilitation Manager

  1. Appointment of Rehabilitation Manager
  2. Prohibiting the Appointment of Rehabilitation Manager in Extraordinary Conditions
  3. Submission of Rehabilitation Application to the Court
  4. Powers of the Court
  5. Condition effecting the appointment
  6. Choosing Rehabilitation Manager in Extraordinary Matters
  7. Sending the notice of the Appointment of Rehabilitation Manager
  8. Invalidity of Appointment

Chapter III

Rescue Level

Works, Duties and Powers of Rehabilitation Manager

  1. Works of Rehabilitation Manager
  2. Duties of Rehabilitation Manager
  3. Carrying out as the Agent of a Company by the Rehabilitation Manager
  4. Powers of Rehabilitation Manager

Protections to the Company within Rescue Level

  1. Consequences for Company in Rescue Level
  2. Protection to Company
  3. Protection to sureties
  4. Grant of the Court
  5. Property subject to floating charge
  6. Property subject to fixed charge
  7. Protection to the creditors who have security interest in other matters

General Provisions

  1. Liability of Rehabilitation Manager
  2. Notification that company is in rehabilitation
  3. Distribution by Rehabilitation Manager
  4. Declaration relating to the Matters of Company
  5. Formation of Creditors’ Committee
  6. Inspection of books and papers by Creditors
  7. Application to the Court
  8. Meeting of Creditors
  9. Appointment of Rehabilitation Manager by changing
  10. When to submit the Proposal of Rehabilitation Arrangement
  11. Drawing the Rehabilitation Arrangement and facts to be included

Chapter IV

Rehabilitation Arrangement

  1. When to validate the Rehabilitation Arrangement
  2. Notice of Appointment
  3. Commencement of Rehabilitation Arrangement
  4. Supplementary effects of Rehabilitation Arrangement
  5. Effect of Rehabilitation Arrangement on interested persons
  6. The Court may restrict the rights of Creditors who have security interest or owner or lessor
  7. Sector of Arrangement Supervisor
  8. Power the Court may direct
  9. Notification of Rehabilitation
  10. Substitution of Arrangement Supervisor

Chapter V

Changing or Terminating the Rehabilitation Arrangement

  1. Specifying the majority of votes in voting
  2. Termination of Rehabilitation Arrangement in reaching the objective
  3. Changing the Rehabilitation Arrangement
  4. Termination of Rehabilitation Arrangement by Creditors in not reaching the objective
  5. Termination by the Court for not reaching the objective or misusing of process

Chapter VI

Transition to Liquidation

  1. Condition of Transition to Liquidation

Chapter VII

General Provisions

  1. Untruthful representation
  2. Declaration relating to the Matters of Company
  3. The Right of Creditors to inspect the books and papers

Part VI

Rescue and Rehabilitation of Micro, Small and Medium Enterprise

Chapter I

Nature of Rehabilitation Process

  1. Application of this Part
  2. Rehabilitation Processes
  3. Aims and Objectives of this Part
  4. Supervision of the Court
  5. Rehabilitation Adviser

Chapter II

Process of Part VI

  1. Commencement of the Process of Part VI
  2. Restriction of the Commencement of Rehabilitation Process
  3. Notification to the Creditors who have security interest
  4. The Notice of completion of the Appointment of Rehabilitation Adviser has to be sent
  5. Commencement of Appointment

Chapter III

Rehabilitation Process

Works, Duties and Powers of Rehabilitation Adviser

  1. Works of Rehabilitation Adviser
  2. Duties of Rehabilitation Adviser
  3. Powers of Rehabilitation Adviser

Protection in Business Rescue Level

  1. Consequences of Business Rescue Level
  2. Protecting the Business
  3. Protecting the Sureties
  4. Grant of the Court
  5. Property subject to floating charge
  6. Property subject to fixed charge
  7. Protecting the Creditors who have security interest in other matters

General Provisions

  1. Liability for Debts
  2. Notification that business is in rehabilitation
  3. Declaration relating to the Business Matters of Part VI
  4. Declaration relating to Business Matters may be relied
  5. Inspection of books and papers by Creditors
  6. Application to the Court
  7. Mediation
  8. Meeting of Creditors
  9. Appointment of Rehabilitation Adviser by changing
  10. Drawing Rehabilitation Arrangement and facts to be included
  11. Publication of Proposed Rehabilitation Arrangement
  12. Calling for Creditors’ Meeting to confirm the Rehabilitation Arrangement
  13. Failing to approve the Business Rehabilitation Arrangement of Part VI

Chapter IV

Rehabilitation Arrangement

  1. Commencement of Business Rehabilitation Arrangement of Part VI
  2. Notice of Appointment
  3. Supplementary effects of Rehabilitation Arrangement
  4. Effect of Rehabilitation Arrangement on the interested persons
  5. The Court may restrict the rights of the Creditors who have security interest or Owners or Lessors
  6. Sector of Arrangement Supervisor
  7. Power the Court may direct
  8. Notification of Rehabilitation Arrangement
  9. Substitution of Arrangement Supervisor

Chapter V

Changing or Termination of Rehabilitation Arrangement

  1. Specifying the majority of votes in voting
  2. Terminating the Rehabilitation Arrangement in reaching the objective
  3. Changing the Rehabilitation Arrangement
  4. Terminating the Rehabilitation Arrangement by the Creditors in not reaching the objective
  5. Terminating the Rehabilitation Arrangement by the Court in not reaching the objective or misusing the process

Chapter VI

Transition to Liquidation

  1. Condition of the Transition to Liquidation

Chapter VII

Liquidation of the Registered Businesses of Part VI

  1. Liquidation of the Businesses of Part VI applies to Part VII
  2. Application and Fees for Application
  3. Evidence and Priority Arrangement of Claim
  4. Liquidator is not liable to incur the expenses which are unable to be paid
  5. Liquidating immediately the Businesses of Part VI registered as Company

Part VII

Liquidation

Chapter I

Winding Up of Companies registered under the Companies Law

  1. Application of this Part
  2. Priority of Rehabilitation Processes
  3. Conditions of Voluntary Winding Up of Company
  4. Dividing the Voluntary Winding Up by members and creditors
  5. Changing from Voluntary Winding Up to Winding Up by the Court
  6. When Voluntary Winding Up start

Chapter II

Members’ Voluntary Winding Up

  1. Declaration of Solvency in members’ voluntary winding up
  2. Appointment of Liquidator
  3. Effect of Insolvency by the Company
  4. Transition to creditors’ Voluntary Winding Up

Chapter III

Creditors’ Voluntary Winding Up

  1. Application of this Chapter
  2. Meeting of Creditors
  3. Burden to submit the declaration relating to the matters of Company by the Directors to the Creditors
  4. Appointment of Liquidator

Chapter IV

Liquidation by the Court

  1. Jurisdiction of the Courts
  2. Application to the Superior Court

Fundamental Causes and Effects of Application for Winding Up

  1. Circumstances in which company may be wound up by the Court
  2. Presuming as Insolvency
  3. Submitting the application for liquidation
  4. Power of the Court on hearing the application
  5. Power of the Court to stay or restrain proceedings

Appointment of Liquidator

  1. Appointment of Provisional Liquidator and powers thereof
  2. Appointment of Liquidator
  3. Process of appointment of Official Receiver as Liquidator
  4. Calling for Meeting to substitute the appointed Liquidator
  5. Appointment by the Court continuously with Rehabilitation Process

Inspection Procedures

  1. Power to stay Liquidation

Chapter V

Supplementary Consequences

  1. Supplementary Consequences of Liquidation
  2. Custody of company’s properties
  3. Transferring the Company’s properties to the Liquidator in accordance with the law
  4. Effect of Approval and Attaching Warrant
  5. Duties of the Officer approving and carrying out under the Order of the Court and other procedures

Chapter VI

Liquidators

  1. Duties of Liquidator
  2. Inspection by Liquidator

Powers and Duties of Liquidator

  1. General Powers of Liquidator
  2. Duty of Liquidator to report
  3. Vacancy in office of Liquidator
  4. Removal of Liquidator
  5. Filling the Vacancy of Liquidator
  6. Not appointing or nominating the Liquidator by the Company
  7. Abandonment of Liquidator
  8. Applying the Decision of Liquidator to the Court
  9. Deceiving for bribery affecting the Appointment

Chapter VII

Provisions relating to Company Liquidation

General Provisions

  1. Notification that Company is in Liquidation
  2. Declaration relating to the Matters of Company
  3. Formation of Creditors’ Committee
  4. Inspection of books and papers by Creditors
  5. Application to the Court
  6. Additional Powers of the Court

Priority Arrangements to be Distributed

  1. Equality of Debt Priority Level
  2. Distribution of Company’s Properties
  3. Payment of Priority Claims
  4. Interest on Debts
  5. Specific Specification of Debt Level
  6. Applying for Receipts from Security Contracts

Administration of Debts and Claims

  1. Debts or Claims allowed to present evidence
  2. Presenting Evidence relating to Debts or Claims
  3. Mutual Credit and Set-Off
  4. Power to remove the creditors who are not able to proof in time
  5. Presenting evidence for debt by the creditor who has security interest
  6. Priority arrangement of related staffs among pledges
  7. Right of declaration for not taking responsibility for burdened property
  8. Refusal of not taking responsibility on leased property
  9. Ordinary powers of the court relating to the refusal of not taking responsibility
  10. Powers of the court relating to the refusal of not taking responsibility on leased property
  11. Annulling the contracts by the court

Final Liquidation and Dissolution

  1. Final meeting before dissolution
  2. Final dissolution and rehabilitation
  3. Immediate Dissolution

Chapter VIII

Misusing while or before Liquidation

Punishment against Companies and Company Officers, Inspection and Proceeding, Offences for Imitation and Fraud

  1. Cheating with the intention of liquidation
  2. Misconduct in liquidation process
  3. Untruthful representation to creditors
  4. Taking the directors and officers action, causing the irresponsible directors and liquidators to take responsibility
  5. Fraudulent trading
  6. Wrongful trading
  7. Restriction of reusing company name

Inspection of Corruption and Proceedings

  1. Prosecution of irresponsible officers and members of company
  2. Duties arising under S.221

Chapter IX

Contributories

  1. Liability of present and past members as contributories
  2. Powers of the Court
  3. Using the books and papers of the company as evidence

Chapter X

Liquidation of unregistered companies

  1. Meaning of unregistered company
  2. Liquidation of unregistered company
  3. Liquidation of a company incorporated outside the Union of Myanmar
  4. Actions to be suspended under the liquidation order

Part VIII

Individual Insolvency

Chapter I

Making Voluntary Arrangements

Moratorium for Insolvent Debtor

  1. Application
  2. Moratorium order of the Court
  3. Conditions for making moratorium order
  4. Effects of application for moratorium order

Proposal of Debtor

  1. Report of the proposed insolvency practitioner
  2. Proposal of debtor and report of the proposed insolvency practitioner
  3. Summoning of creditors’ meeting
  4. Decisions of creditors’ meeting
  5. Report of decisions to the Court
  6. Effects of approval
  7. Objection on the decision approved voluntary arrangement
  8. Untruthful representation
  9. Proceedings against defective debtor
  10. Ending of arrangements before the prescribed period
  11. Implementation and supervision of approved voluntary arrangement

Chapter II

Proceedings relating to Individual Insolvency

  1. Person who has the right to submit the application for bankruptcy order
  2. Requirement in respect of debtor
  3. Other specifications relating to the application for bankruptcy order

Application of Creditors for Bankruptcy Order

  1. Grounds of creditors’ application
  2. Meaning of insolvency
  3. Notice of application for bankruptcy order
  4. Debt which has security interest
  5. Immediate application
  6. Proceedings carried out relating to the application of creditor
  7. If the debtor is micro, small and medium enterprise
  8. Appointment of trustee or official receiver according to the application of creditor
  9. Appointment of official receiver

Application by Debtor

  1. Application of debtor
  2. Grounds the debtor may apply
  3. Taking action on the application
  4. Appointment of trustee or official receiver

Debtors who are not Micro, Small and Medium Enterprises

  1. Applications regarding the debtors who are not micro, small and medium enterprise
  2. Appointment of mediator
  3. Moratorium order
  4. Notice of appointment of trustee

Commencement and Termination of Bankruptcy

  1. Commencement and effect of bankruptcy
  2. Duration of bankruptcy
  3. Effects of the exemption from bankruptcy
  4. Power of the Court that may annul the bankruptcy order

Chapter III

Protection of Bankrupt’s Properties and Inquiry into Bankrupt’s Transactions

  1. Bankrupt’s properties
  2. Restrictions on the administration of bankrupt’s properties
  3. Restrictions on proceedings and remedies
  4. Power to appoint provisional receiver
  5. Declaration in respect of transactions
  6. Duties and powers of trustee to make inspection
  7. Examining the insolvent debtor in public
  8. Duties to be carried out by the insolvent debtor

Chapter IV

Trustees in Bankruptcy

Term of Trustee

  1. Appointment
  2. Removal of trustee, vacancy
  3. Termination from duty
  4. Vacancy of trustee

Supervising the Trustee

  1. Committee of creditors
  2. Supervising the trustee by the Court
  3. Liabilities of trustee

Chapter V

Powers and Duties of Trustee

Preliminary

  1. Duties of trustee

Confiscation, Detention and Sale of Bankrupt’s Properties

  1. Transfer of bankrupt’s properties to trustee
  2. Properties received after being a bankrupt
  3. Transfer of valuable properties to trustee
  4. Specification of period to be noticed under S.286 or S.287
  5. Order to pay debts from the incomes of bankrupt
  6. Agreement to pay from income
  7. Supervising by trustee
  8. Duty to transfer to trustee
  9. Charge on the dwelling-house of bankrupt
  10. Application for possession or charge and dwelling-house is at undervalue
  11. Powers of trustee

Refusal of Burdened Property

  1. Declaration of not taking responsibility for burdened property
  2. Informing the decision of trustee
  3. Refusal of not taking responsibility on leased property
  4. Refusal of not taking responsibility regarding the premises of dwelling-house
  5. Powers of the Court regarding the refusal of not taking responsibility
  6. Powers of the Court regarding the refusal of not taking responsibility on leased property

Claim for Distribution of Bankrupt’s Property and Distribution

  1. Proof of debts
  2. Mutual debts and set-off
  3. Share distribution
  4. Claims of unsatisfied creditors
  5. Distribution of property in category
  6. Preferential debts
  7. Specifying the preferential arrangement of debts
  8. Debt to pay to bankrupt’s spouse
  9. Final distribution
  10. Final meeting of creditors
  11. Exception relating to bankrupt’s premises

Supplementary Provisions

  1. Bankrupt’s duties relating to trustee
  2. Moratorium of distribution of property in the matter of later bankruptcy
  3. Balancing among bankrupt’s properties in earlier bankruptcy and later bankruptcy

Chapter VI

Negotiating with Creditors or Making Working Plan

  1. Proposal for negotiation or making working plan
  2. Reporting the proposal of bankrupt by trustee
  3. Presenting in respect of negotiation or working plan
  4. Holding the meeting of creditors
  5. Report of decisions to the Court
  6. Effects of approval

Chapter VII

Effects of Bankrupt on Opportunities and Transactions

  1. Opportunities relating to trusted land

Rights to Live

  1. Right to live of the wife or husband of bankrupt
  2. Right to live of bankrupt

Rebalancing the Prior Transactions

  1. Invalidating the ordinary transfer of debts according to account
  2. Contracts to which bankrupt is party
  3. Approval procedures
  4. Right to claim for rent
  5. Trainees
  6. Unenforceability of liens on books and papers
  7. Arbitration agreement to which bankrupt is party

Chapter VIII

Bankruptcy Offences

  1. Application of this part
  2. Defence of innocent intention

Violations of Bankrupt before or after the Commencement of Bankruptcy

  1. Non-disclosure
  2. Concealment of property
  3. Concealment of books and papers and falsification
  4. False statements
  5. Fraudulent disposal of property
  6. Absconding
  7. Fraudulent dealing with property obtained on credit
  8. Obtaining credit, engaging in business

Chapter IX

Power of the Court in Bankruptcy

  1. Power to arrest
  2. Seizure of bankrupt’s properties
  3. Inquiry into bankrupt’s properties and dealings
  4. Power of the Court to approve under S.344
  5. Appointment of provisional receiver
  6. Power to appoint special manager
  7. Redirection of bankrupt’s letters
  8. Limitation
  9. Unrighteousness
  10. Exemption from stamp duty

Part IX

Application of Current Position and Prior Transactions

Chapter I

Management by Rehabilitation Manager, Liquidator etc.

  1. Appointment of two or more insolvency practitioners
  2. Duty relating to company’s properties
  3. Duty to cooperate with current position
  4. Inquiry into company’s transactions
  5. Power of the Court to approve under S.355

Chapter II

Remuneration for Insolvency Practitioners appointed under this Law

  1. Application of this chapter
  2. Fixing remuneration

Chapter III

Application of Prior Transactions

(Rehabilitation, Liquidation and Insolvency)

  1. Date of commencement
  2. Transactions at undervalue
  3. Cancellation of prior activity
  4. Orders under S.360 or S.361
  5. Unfair preferences
  6. Avoidance of company’s certain floating charges

Chapter IV

Other Matters

  1. Lien of books and papers
  2. Mode of attending meeting
  3. Use of websites

Part X

Provisions relating to Cross-Border Insolvency

Chapter I

Preliminary

  1. Objective

Chapter II

General Provisions

  1. Definition
  2. Application of this part
  3. International duties of the State
  4. The Court having jurisdiction and authority
  5. Power to carry out in a foreign country as an insolvency practitioner registered under this Law
  6. Refusal under public policy
  7. Additional assistances under other laws
  8. Interpretation

Chapter III

Access of Foreign Representatives and Creditors to the Court

  1. Right of direct access
  2. Limited jurisdiction
  3. Application by a foreign representative to commence a proceeding under this Law
  4. Participation of a foreign representative in a proceeding under this Law
  5. Access of foreign creditors to a proceeding under this Law
  6. Notification to foreign creditors of a proceeding under this Law

Chapter IV

Recognition of a Foreign Proceeding and Relief

  1. Application for recognition of a foreign proceeding
  2. Presumptions concerning recognition
  3. Decision to recognize a foreign proceeding
  4. Subsequent information
  5. Relief that may be granted upon application for recognition of a foreign proceeding
  6. Effects of recognition of a foreign main proceeding
  7. Relief granted upon recognition of a foreign proceeding
  8. Protection of creditors and other interested persons
  9. Actions to avoid acts detrimental to creditors
  10. Intervention by a foreign representative in proceeding in the State

Chapter V

Cooperation with Foreign Courts and Foreign Representatives

  1. Cooperation and direct communication between a Court of the State and foreign courts or foreign representatives
  2. Cooperation and direct communication between a registered insolvency practitioner and foreign courts or foreign representatives
  3. Forms of cooperation

Chapter VI

Concurrent Proceedings

  1. Commencement of a proceeding under this Law after recognition of a foreign main proceeding
  2. Coordination of a proceeding under this Law and a foreign proceeding
  3. Coordination of more than one foreign proceeding
  4. Presumption of insolvency based on recognition of a foreign main proceeding
  5. Form of payment in concurrent proceedings

Part XI

General Provisions

Chapter I

Jurisdictions

  1. Jurisdictions of the Courts
  2. Non cognizable Offences
  3. Appeals and jurisdiction to appeal

Chapter II

Composition of Offences

  1. Power of Court to grant relief in certain cases
  2. Limitation for proceeding
  3. Notice for fine

Chapter III

Declarations, Orders and Injunctions

  1. Application of this chapter
  2. Declaration of contraventions in respect of duties
  3. Order to pay compensation to Registrar
  4. Order to pay compensation to sufferer
  5. Power to grant injunction
  6. No limitation on Court’s powers

Chapter IV

Violations and Defences

  1. Provisions relating to violations

Defence and Relief

  1. Defence by company’s director or officer
  2. Relief from liability in declaration of contravention

Chapter V

Miscellaneous

  1. Rules, notifications and directives
  2. Power to delegate judicial power and establish Special Courts
  3. Application of this Law
  4. Causing the current proceedings for liquidation to continue
  5. Causing the instruments and documents to remain in full force
  6. Applications in process
  7. Things done under previous corresponding provisions continue to have effect
  8. Preservation of accrued rights
  9. Causing the provisions or expressions to remain in full force
  10. Repealing of primary laws

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