02 December 2019
It's learnt that the shareholders are likely to return controversial YUPT shares, which fail to return profits so far.
Shareholders with The Yangon Urban Public Transportation Company (YUPT) on Friday flocked to YUPT office.
Over 280 shareholders were there to vote on whether they want to withdraw their shares and to re-elect new directors.
The votes will be submitted to the government and the government will find way to manage this issue.
This is the second time the directors-election is held. This comes after the first directors-election in early November, which caused debate and got hauled.
The company not being able to return any profit to the shareholders over the 3-year term leads to the outcry.
For more on this, U Tun Oo, leader of the shareholders explains, "At the previous event, we shareholders demanded our shares be bought back. But that event was hauled. So this time, we put up this event to re-elect the directors. So 11 shareholders organized this event.
So we hope this will give us some result. After these years with no profits returned, we decided to take back our shares. But we are not withdrawing all our investment, we will leave some shares. We are just doing so to the extent where certain results come up. We want to bring the public transportation to a certain level and the government is also helping us. The government even contributed 35 million Kyats. We do not like the directors, who are currently working with the company. And so we are here to re-elect directors on our own. And we are optimistic that the directors we elect will make this work."
There are 5 directors nominated by shareholders and 289 shareholders are to vote.
It's also noted that it takes 5-8 years to receive return on investment for a public transport business.
U Maung Maung Lwin, General Manager of YUPT also said, "If the number of buses will increase, the income will increase. Then, once the depreciation period is over, we will be managing dividend for the shareholders. That will be done in line with the Myanmar Companies Law 2017.
The shareholders are now called in...so we will take a vote to find out how many shareholders want to withdraw. Then we will submit the voting results to the government and figure out a way to solve this issue. This will take three days so that as many shareholders as possible can join in voting. There are about 290 shareholders.”
There are about 5 million daily commutes made by estimated 2.5 million passengers and YBS service is the main transportation mean for the daily commute in Yangon.
The YUPT started its operation with 5.634-billion-kyat investment. Now the capital investment volume has reached over 40 billion Kyats.
The company has 940 buses for daily services.
Efforts are underway to digitize the YBS service and the facility.
Over 1500 buses are prioritized to get the payment card system installed and the system is expected to come into effect by the end of this year.
So far over 1500 buses from 4 bus line companies have been tested and the devices will be installed very soon.
The system is currently running with over 6500 buses, operated by 18 bus companies.