How to assess the CG Scorecard and Related-Party Transactions’ Resolutions

December 16, 2023

ABOUT THE WEBINAR

This session includes two key categories. They are concerning the assessment of Corporate Governance Scorecard and Related Party Transactions’ Resolution.

The Corporate Governance Scorecard can be measured the current corporate governance situation of the company. The companies can identify the parameters where they are lacking and take corrective actions to rectify. Companies should also use the Scorecard as a transparent scoring system to allow internal evaluation and to discover opportunities for long-term improvement. It promotes strengthening of monitoring bodies, necessary for systematic and compelling enforcement of the company.

Myanmar Corporate Governance Scorecard (MCGS) 2018 is based on the structure and criteria of the ASEAN Corporate Governance Scorecard (ACGS) 2017. It is a joint initiative of the ASEAN Capital Market Forum (ACMF) and the Asian Development Bank (ADB) that began in 2011, and aligned with the revised G20/OECD Principles of Corporate Governance. The goal of MCGS is to benchmark corporate governance practices in Myanmar companies to assess current corporate governance gaps and provide a framework for future policy discussions and corporate governance development efforts.

As the second category, the nature of Related Party Transactions (RPTs) can be learned. RPTs generate profits by extracting funds contributed by shareholders and providing them to related parties. Failure to provide timely clarifications to shareholders for these suspicious transactions leaves minority shareholders unprotected. Such use of RPTs is thus referred to as abusive RPTs. These transactions ultimately break the confidence of the public, stall the economic growth of the company in the stock market, and reputation losses to the regulatory authorities of the company. Any company has RPTs. The companies need to resolution technical know how these transactions to protect the rights of shareholders. Hence, it is vital to properly management and control the RPTs undertaken by companies, and thus the robustness of the laws regulating them forms an integral part of corporate governance.

 

SPEAKERS

Daw Ei Sein Sein Kywe is a Director for the Development and Policy Department of the Office of the Securities and Exchange Commission of Myanmar (SECM). She has been assigned as a Secretary of the Domestic Bond Market Development Working Committee (DBMD WC) organized by the Ministry of Planning and Finance since 2019. Before serving in SECM, she worked as a manager for Myanma Economic Bank (MEB). She has about 15 year experiences in banking sector. In 2014, she was transferred to SECM as an Assistant Director to support not only the establishment of Yangon Stock Exchange but also opening a new page of Capital Market in Myanmar.

She was working together with the International Finance Corporation (IFC) from 2017 to 2019 for the enhancement of good corporate governance practice in Myanmar companies and deeply participating to launch the Myanmar Corporate Governance Scorecard 2018: A Report on the Assessment of Myanmar Companies. As another part, she was cooperating with the IFC’s Corporate Bond Market Development (CBMD) Project Team to initiate the Corporate Bond Market Development in Myanmar during 2019 to early 2021. She also worked as a local consultant for the research paper “Capacity Building for Capital Market Development in Myanmar” with the Korean Researchers of Korea Development Institute (KDI) for the Knowledge Sharing Program (KSP) 2017/18.

She holds a B.Econ in Economics and a Master degree of Development Studies (MDevS) from the Yangon University of Economics.

 

Daw Thiri Thant Mon is the Head of ESG for the Fixed Income Division EMEA at Morgan Stanley, a leading global investment bank. She also serves as Executive Director of the Myanmar Institute of Directors, board member of British Chamber of Commerce Myanmar and trustee for Turquoise Mountain Foundation, a UK charity that focuses on heritage preservation countries such as Afghanistan and Myanmar. She has held a number of leadership and board roles over her 20-year career as a finance and capital markets professional.

She holds a BA in Economics from William & Mary, an MBA from the London Business School, and a Director Certification Diploma from the Thai Institute of Directors.